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Thursday, 15 April 2021

Egyptian distributors of cooking gas cylinders demand higher profit margins

Traders who distribute subsidised butane gas cylinders resume work after shutting their doors in protest at low commission on the price of the cylinders

Ahram Online, Wednesday 3 Apr 2013
Cairo
Egyptians stand in front of a gas canister warehouse in Cairo (Photo: Reuters)
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Owners of depots where cooking gas cylinders are sold closed their doors on Tuesday after a recent governmental decision to increase the subsidised price of the cylinders, which they say will reduce their profit margins.

Around 2,700 depots across Egypt shut their doors, while a number of the owners attempted to break into the supply ministry in protest.

Under the new prices, the 12.5kg butane cylinder would now be sold at LE8 ($1.17), rising 60 percent from the previous price of LE5 ($0.73), while the 25kg butane canister will be sold for LE16 ($2.30).

Along with the new prices, the government has set the commission that owners of depots can make on each cylinder at LE0.75 ($0.11) for the 12.5kg canister and LE1.5 ($0.22) for the 25kg canister.

The petroleum division at the Egyptian Federation of Chambers of Commerce stated that a fair commission should be set for the depot owners, at an average of LE4 ($0.60) for both sizes of canisters.

According to supply ministry spokesman Nasser El-Farrash, the cooking gas depots were reopened on Wednesday and the canister distributors resumed their work, as the minister of supply vowed to solve the problem in a way would be acceptable to the government, consumers and the distributors.

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