Oil price rise bad news for fries

Bassem Abo Alabass, Wednesday 12 Jan 2011

The price of a litre of oil has risen by 15 per cent per liter as international price increases affect Egyptians already encumbered by rising food bills

Edible Oil

In Egypt, four out of five bottles of oil are imported. In that way the rise in global prices has lead to an increase in the price of edible oil products in the Egyptian food market, following those for sugar and grains.

"Global price were up $55 per ton on bad weather in the main exporting countries to Egypt," said Amr Asfour, vice chairman of the food stuffs department in the chamber of commerce.

Prices of edible oil reached $1544 per ton, against $1489, through the previous week, he adds.

"Many food products are affected," confirmed Ahmed Yehia, chairman of the food stuffs department.

Sun flower oil rose to LE11.5 per litre against LE10 and corn oil reached LE13.5 compared to LE12.5.

Egyptians, however, rely partially on subsidized oil distributed at a reduced fixed price of LE3 per litre.

Overall, oil subsidies amount to 65,000 tons covering around 60 million Egyptians; one litre bottle per family per month.

Egypt's overall annual consumption is of 1.1 million tons and fills the gap with imports of 800,000 tons from Australia, Spain, Russia, Italy and Turkey, according to the ministry of trade and industry.  

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