Annual Gasoline Price Post - and Other Economic News

Gasoline prices were on the rise again in Egypt at the start of the year.  When I arrived at the beginning of January, 92 octane gasoline was priced at 8.25 EGP per liter.  ($1.99 per gallon)    On January 24th, the price was raised to 8.50 EGP per liter ($2.05 per gallon) without warning, prompting much grumbling. The price is set by the government.

Our local Co-Op station down the block now has a new large electronic sign displaying the price.

 

More surprising was a sudden 14% devaluation of the Egyptian Pound a few days ago, which took it from 15.66 to the dollar down to 18.45 per dollar.  This, like anything else negative of recent note, was blamed on "Putin."  Perhaps anticipating further drops, there has been quite a bit of action at the ATMs in town as Egyptians are looking for a more stable spot for their savings  - perhaps gold?

 

 

With that devaluation, gasoline is now selling for the equivalent of $1.74 per gallon prompting no sympathy from us!

At the same time, the government set a fixed price on the price of unsubsidized bread:

The price of unsubsidized bread has jumped by as much as 25%, from 1.00 to 1.25 Egyptian pounds per round, in some bakeries in the three weeks since Russia’s invasion of its neighbor. Flour prices have risen by up to 15%, said Attia Hamad at the Cairo Chamber of Commerce.

The new fixed prices for flat, round balady bread have been set at 0.50, 0.75 and 1.00 Egyptian pounds for loaves weighing 45, 65 and 90 grams respectively. Prices for 40, 60 and 80 gram small, white fino loaves were set at 0.50, 0.75 and 1.00 Egyptian pounds respectively.

Violations of the fixed prices will result in fines between 100,000 and 5 million Egyptian pounds.

President Abdel Fattah al-Sisi last week asked the government to set a price for unsubsidized bread because of the recent price increases.

Will any of this affect the price of our bread sticks and lunch rolls? (see previous post)  Time will tell.

In other gas station news.

We stopped in at the gas station two days ago.  While the pump attendant was working, there was no one on duty to wash the windshield.  It turns out that he had come in to work but after an hour or so, found the temperature too cold to continue and went home. It was 64 degrees that morning. Are we sympathetic?