Prime Minister Mustafa Madbouli said the government will present a comprehensive executive plan to the cabinet within the next ten days, with the objective of implementing President Abdel-Fattah Al-Sisi’s directives related to preparing a national programme aimed at controlling inflation and stabilising food prices.
Madbouli explained that the plan is necessary and comes at the right time as the local market faces pressures resulting from rises in global energy prices and continued regional tensions triggered by the Iran war.
“The rise in global oil prices as a result of renewed tensions in the region imposes additional challenges for the Egyptian economy, but the government is doing its best to deal with these and reduce their impact on local markets and the vulnerable classes,” Madbouli said.
Madbouli indicated that two weeks ago when the US and Iran reached a memorandum of understanding (MoU) on the war, global oil prices fell to $72 a barrel, leading some to ask the government to take immediate action to reduce local prices.
“But the re-eruption of the conflict last week led global oil prices to rise again to reach $85 per barrel,” said Madbouli, stating that there is a need to be patient and to avoid changing decisions without careful study.
He said that Egypt’s Fuel Pricing Committee will reconvene in the first quarter of the current fiscal year (July to September) to review prices for petroleum products.
He indicated that he is holding regular meetings with the ministers of petroleum and finance to secure the state’s needs for petroleum products.
“We are now in the middle of the hot summer season, when the power supply is stable despite the price fluctuations that are taking place,” Madbouli said, also indicating that he is following up the implementation of new renewable energy projects with the minister of electricity on a weekly basis.
The faster these projects enter into force, the more this will contribute to savings on importing traditional fuel and stabilising prices, he added.
As for food security, Madbouli said the Future of Egypt Authority for Sustainable Development, in partnership with the Ministries of Supply and Agriculture, are currently closely monitoring the local market to make sure that basic goods are available and prices are stable.
Supply and Internal Trade Minister Sherif Farouk indicated that a comprehensive working paper has been prepared that includes proposed mechanisms for implementing President Al-Sisi’s directives related to stabilising local food prices.
He indicated that the average strategic reserve of basic commodities in Egypt currently ranges between six and 12 months and that the ministry of supply and internal trade has a large network of about 40,000 food supply outlets across Egypt.
Work is currently underway to develop them to continue selling high-quality goods at fair prices.
Assistant Minister of Supply and the Ministry Spokesperson Ahmed Kamal said that retailers involved in selling subsidised food goods to the holders of ration cards will be transferred to work in the new retail outlets.
He said that the government plans, which will be submitted to the cabinet within ten days, aim to make sure that all the relevant regulatory authorities, particularly the Consumer Protection Agency and the Competition Protection Authority, exercise complete control and continuous monitoring over all local markets to prevent price manipulation and counter any monopolistic practices.
“But please note that the government believes in the free market and does not intend to impose an obligatory pricing system,” Kamal said.
He said that government plans are based on establishing and developing strategic warehouses to contribute directly to reducing the costs of transportation, handling, and shipping operations.
“These steps will positively affect the final prices for consumers, not to mention the fact that the prices will be unified in all relevant outlets across all of Egypt’s 27 governorates,” he added.
The Agriculture Ministry will play a main role in implementing the government plans as it has 653 outlets that will sell all kinds of food products at reduced prices.
“The plans also aim to make use of 1,500 food outlets affiliated with the Future of Egypt Authority and another 1,040 outlets affiliated with the Holding Company for Food Industries,” Kamal said.
Economist Mustafa Badra said that in addition to expanding food outlets that sell basic goods at fair prices, the government may also revive its coordination with the chambers of commerce and the Federation of Egyptian Industries to encourage producers and traders to launch initiatives to stabilise and even reduce the prices of some basic goods.
These tools were used by the government in previous periods and are likely to be reactivated under the new plans, he said.
Badra said that the government’s success in providing basic food commodities at reasonable prices will directly impact inflation rates, especially since food and beverages represent about 40 per cent of the average household’s spending.
As a result, any decrease in the prices of these commodities will have a direct and clear effect on overall inflation rates.
However, left-wing MP Ihab Mansour warned that any government decision to raise the prices of fuel or electricity would scupper plans for stabilising prices.
“Madbouli’s announcement that the Fuel Pricing Committee will reconvene shows that there is a government intention to raise fuel prices. This would be a step in the wrong direction and indicate a failure to stabilise prices or control inflation,” Mansour said.
The latest inflation data indicate a relative slowdown in the pace of price increases. According to data from the Central Agency for Public Mobilisation and Statistics (CAPMAS), the annual inflation rate for urban consumer prices recorded 14.3 per cent in June, compared to 14.6 per cent in May, while the overall urban consumer price index recorded a monthly decline of 0.4 per cent.
Central bank data showed that core inflation rose year-on-year to 14.3 per cent in June, compared to 13.8 per cent in May, despite registering a limited monthly increase of 0.3 per cent, indicating continued pressure on some core price components despite the slowdown in overall inflation.
The government’s plans for stabilising prices are also based on increasing the subsidies on bread and rationed goods, Farouk said.
He indicated that the budget for the fiscal year 2026-2027, which came into effect on 1 July, sees an increase of about LE9.8 billion in allocations to bread subsidies, or about LE133.8 billion, up from LE124 billion in the last fiscal year.
“This increase has come despite the government’s recent decision to strip around one million citizens of ration cards and food subsidies,” Farouk said.
In a related development, he indicated that Egypt’s wheat imports in June totaled about 405,000 tons, the lowest monthly level ever.
“This slowdown in imports comes as the government has continued to receive large quantities of local wheat since mid-April, providing a large part of the market’s needs during June and in parallel with the imported stock that had been built up during previous months,” Farouk said.
He said that these steps should lead to stabilising food prices on the local market in accordance with government plans.
Statistics show that the quantities of wheat supplied by farmers during the current harvest season have so far reached 4.6 million tons, the highest number ever recorded.
Madbouli said the government’s facilitating delivery procedures and expediting the disbursement of farmers’ dues had led to a historic increase in wheat supply rates, supporting the state’s efforts to enhance the strategic wheat stock, achieve food security, and stabilise prices in the light of the economic challenges affecting global markets.
* A version of this article appears in print in the 23 July, 2026 edition of Al-Ahram Weekly
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