Egypt gov't will continue to subsidise bread amid rise of fuel prices: Minister of Supply

MENA , Ahram Online , Sunday 17 Jul 2022

The General Authority for Supply Commodities (GASC) will continue to bear the difference between the actual cost of production and the price to consumers of subsidised bread in diesel-fueled bakeries, Minister of Supply Ali Moselhi said Sunday.

Bread
A file photo of bread vendor in Cairo. Photo by AFP

 

The supply minister said that GASC will pay the net cost of producing subsidised bread to the diesel-fueled bakeries after the latest fuel prices hikes by the government.

The price of subsidised loaves of bread will be kept unchanged at five piasters each, as the government will bear the difference between the cost and price, the minister added.

The Egyptian government has allocated EGP 90 billion in the budget for FY 2022/23 to cover food subsidies including bread subsidies for 71 million citizens holding ration cards.

Egypt’s Fuel Automatic Pricing Committee (FAPC) raised on Wednesday fuel prices for various octanes including diesel fuel by EGP 0.5 to EGP 1 per litre for the third quarter of the year due to the global rise in oil prices.

The price of diesel and kerosine rose from EGP 6.75 to EGP 7.25 per litre.

Short link: