File Photo: An Egyptian baker prepares "baladi" bread in a local bakery in the Nile Delta city of Mahala. AFP
In a statement, Farouk explained that the state will absorb an estimated EGP 1.6 billion annually, approximately EGP 134 million per month, to keep the bread subsidy intact.
"The state will bear the additional production costs resulting from higher diesel prices for bakeries that rely on the fuel," the minister said.
Farouk also assured citizens that prices of all goods distributed through ration cards at supply outlets and consumer complexes would remain at their current levels.
His remarks came after the government announced on Tuesday an increase in the prices of several petroleum products and natural gas for vehicles, citing rising global oil prices linked to the US-Israeli war on Iran.
Oil prices have topped $100 a barrel for the first time since Russia invaded Ukraine in 2022, as the US-Israeli war against Iran roils energy markets across the region.
The war has knocked out roughly one-fifth of global crude oil and natural gas supplies after Iran moved to effectively shut down tanker traffic through the Strait of Hormuz, a chokepoint through which oil from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, and the UAE passes.
In Egypt, the government raised fuel prices as of Tuesday, with petrol grades climbing by EGP 3 per litre, bringing 95-octane to EGP 24, 92-octane to EGP 22.25, and 80-octane to EGP 20.75.
Diesel also rose by EGP 3, from EGP 17.5 to EGP 20.5 per litre, while natural gas for vehicles jumped from EGP 10 to EGP 13 per cubic metre.
Cooking gas cylinders also increased, with households now paying EGP 275 for a 12.5 kg cylinder instead of EGP 225, and EGP 550 for the 25 kg size instead of EGP 450.
The supply minister noted that his ministry has activated a 24-hour central operations room to monitor petroleum availability and track stock levels at gas stations and butane depots, while field inspectors have been deployed to ensure that prices at the pump are not being illegally inflated.
Farouk also directed inspection teams to monitor bakeries, markets, and food outlets for vendors using the fuel hike as a pretext to price gouge.
He warned that strict legal action will be taken against violators and pledged continued daily market monitoring nationwide to ensure price stability, according to the statement.
In June 2024, Egypt implemented the first increase in subsidized bread prices in more than three decades, raising the cost from 5 piasters to 20 piasters per loaf.
The national subsidy programme provides five 90-gram loaves daily to millions of cardholders across the country.
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