{"id":644752,"date":"2017-07-03T04:04:12","date_gmt":"2017-07-03T04:04:12","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2017\/07\/03\/fuel-hike-to-reduce-state-expenditures-on-fuel-subsidies-to-7-8-of-total-spending\/"},"modified":"2017-07-03T04:04:12","modified_gmt":"2017-07-03T04:04:12","slug":"fuel-hike-to-reduce-state-expenditures-on-fuel-subsidies-to-7-8-of-total-spending","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2017\/07\/03\/fuel-hike-to-reduce-state-expenditures-on-fuel-subsidies-to-7-8-of-total-spending\/","title":{"rendered":"Fuel hike to reduce state expenditures on fuel subsidies to 7-8% of total spending"},"content":{"rendered":"

<\/a> Companies are continuing to calculate adjustments to rising production costs after <\/strong>last Thursday\u2019s fuel hikes<\/strong><\/a>. <\/strong>The Federation of Egyptian Chambers of Commerce expects price increases could range anywhere from 5-30% depending on the good, members of the tell Al Shorouk<\/a>. With the costs of land transport already witnessing a reported 25% increases<\/a>, companies, such as dairy and juice maker Juhayna, are already holding meetings to determine new pricing schemes. However, Juhayna intends to wait a while before issuing any increases, sources tell the press<\/a>. Federation members said they expect food prices to rise by 3-5%, while building material costs are seen rising by no less than 30% \u2014 especially as the value-added tax also rises by 1 bps to 14%.<\/p>\n

Majority of the anger continues to emanate from transport sector workers<\/strong> with anumber of drivers reportedly going on strike<\/a> on Sunday, rallying outside city hall gates in different provinces to demand higher fares. This comes after a number of governorates, including Cairo, decided to hike taxi fares<\/a> to EGP 5 from EGP 4 previously, increasing the price per kilometer by EGP 0.25 to EGP 2. Private cab companies will also be compensating their drivers for the increase in fuel prices,according to Al Borsa<\/a>, with Uber offering each of its captains a EGP 15 cash bonus for every four trips, while Careem offers a EGP 3 bonus on each one.<\/p>\n

Inflation will rise as a result of fuel hikes, but won\u2019t be worse than before the EGP float:<\/strong> Analysts are fearing a reversal in Egypt\u2019s cooling down of inflation as a result of the recent fuel hikes, but do not necessarily believe that the rate increase will be worse than before the EGP float. \u201cInflation over the next two months may rise to 34 to 36 per cent but the rate of inflation in the last two months of this year will be less than the same period last year when the pound was floated,\u201d Pharos Holdings\u2019 Radwa El Sweify tells AFP<\/a>.<\/p>\n

Vice Minister of Finance Kouchouk continued to defend the hikes<\/a> on Sunday, stating that they cut the state\u2019s petroleum products expenditures to around 7-8% of total spending<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Companies are continuing to calculate adjustments to rising production costs after last Thursday\u2019s fuel hikes. The Federation of Egyptian Chambers of Commerce expects price increases could range anywhere from 5-30% depending on the good, members of the tell Al Shorouk. With the costs of land transport already witnessing a reported 25% increases, companies, such as […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8572],"tags":[72,2380],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-644752","post","type-post","status-publish","format-standard","hentry","category-speed-round","tag-enterpriseam","tag-speed-round","wpautop","entry"],"acf":{"mongo_id":"b3723b4c-4e89-4894-810e-ab996b722456","order":"0","is_powered_by":true,"section_story_id":"2b583a39-8be8-485e-ab04-cc56fe8976e1","story_type":"1","photo_url":"","photo_position":"above","related_issue":[644744],"teaser":"","voice_url":""},"yoast_head":"\nFuel hike to reduce state expenditures on fuel subsidies to 7-8% of total spending - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2017\/07\/03\/fuel-hike-to-reduce-state-expenditures-on-fuel-subsidies-to-7-8-of-total-spending\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fuel hike to reduce state expenditures on fuel subsidies to 7-8% of total spending\" \/>\n<meta property=\"og:description\" content=\"Companies are continuing to calculate adjustments to rising production costs after last Thursday\u2019s fuel hikes. 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The impact of the subsidy cuts is already reducing consumer purchasing power, and passing the added cost burden\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/1\/603.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":647142,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/05\/03\/earnings-watch-juhayna\/","url_meta":{"origin":644752,"position":1},"title":"Earnings watch: Juhayna","author":"enterpriseam admin","date":"3 May 2017","format":false,"excerpt":"EARNINGS WATCH- Juhayna reported a 28% y-o-y drop in its net income in 1Q2017 to EGP 58 mn, according to its earnings release. Revenues for the quarter were up 17% y-o-y, registering EGP 1.29 bn. Juhayna says \u201cthe highest contributor to the top-line in 1Q2017 remained to be the dairy\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":652211,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/01\/03\/juhayna-raising-prices-for-the-third-time\/","url_meta":{"origin":644752,"position":2},"title":"Juhayna raising prices for the third time","author":"enterpriseam admin","date":"3 January 2017","format":false,"excerpt":"Dairy products manufacturer Juhayna could raise the price of juice and dairy products for a third time in as many months, citing increasing production costs, Al Mal reported. Juhayna joins its FMCG counterparts, who have reportedly increased their prices by 10-40% with the start of 2017. Juhayna had already raised\u2026","rel":"","context":"In "Basic Materials + Commodities"","block_context":{"text":"Basic Materials + Commodities","link":"https:\/\/enterpriseam.com\/egypt\/category\/basic-materials-commodities\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":641939,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/08\/02\/listed-food-companies-have-seen-their-profits-take-a-hit-in-2q2017-on-the-back-of-high-inflation-interest-rate-hikes\/","url_meta":{"origin":644752,"position":3},"title":"Listed food companies have seen their profits take a hit in 2Q2017 on the back of high inflation, interest rate hikes","author":"enterpriseam admin","date":"2 August 2017","format":false,"excerpt":"Listed food companies have seen their profits take a hit in 2Q2017 on the back of high inflation, interest rate hikes, and the declining purchasing power of consumers, says Reuters. 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