Fuel affects production cost by 5-7%: El-Sewedy

CAIRO – 1 July 2017: New fuel hikes will affect production cost for industries by five to seven percent, chairman of the Federation of Egyptian Industries (FEI) Mohamed Elsewedy said in a Saturday statement.

El-Sewedy asked manufacturers to bear the increase and not to raise prices of their products.

“We hope this measure to be accompanied with offering new industrial opportunities to investors through issuing more land plots and support small and micro small industries,” El-Sewedy said.

In an effort to help the government achieve its economic reform strategy, FEI has been asking that energy subsidies be lifted to be in-line with international prices.
New fuel prices were announced Thursday as the price of 80-octane gasoline soared from LE 1.60 ($0.08) to LE 3.65 per liter, while the 92-octane increased from LE 3.50 to LE 5.00 per liter.

Following that decision, Minister of Industry, Trade and Small Industries Tarek Kabil said that the prices of natural gas supplies to factories will not be increased.