Reasons for the high prices of popular cigarettes in Egypt
The Eastern Tobacco Company aims to achieve profits during the current fiscal year from the new increase in cigarette prices, and to avoid losses due to currency differences and rising production costs.
Shrouq
Eastern Company, the largest producer of cigarettes in Egypt, raised the prices of smoke products for the third time in 12 months.
The rise in cigarette prices
The increase in prices comes as a result of inflationary pressures and for the continuation of the production cycle.
And the new increase for cigarettes in Egypt, approved by the Egyptian government-owned Eastern Smoke Company, ranged from 2 to 3 pounds per pack.
Why did the prices go up?
In March 2022, the company raised the prices of its products between 50 pounds and 1 pound per package, and raised them again in September 2022 for some types by 2 pounds.
The head of the Tobacco Division of the Egyptian Industries Association, Ibrahim Ambabi, said in press statements that the Eastern Tobacco Company aims to achieve profits during the current fiscal year from the new increase in cigarette prices, and to avoid losses due to currency differences and rising production costs.
He explained that the increase in the prices of new cigarettes in Egypt also benefits the state treasury, as a result of the higher cost of taxes paid on cigarette packs, and benefits the comprehensive health insurance that is financed by cigarette taxes.
Sharqiya's net profit for the smoke in the first half
The net profit of Eastern Tobacco in the first half of the current fiscal year was 3.49 billion pounds (110 million dollars), a 19% increase on an annual basis compared to 2.9 billion pounds (97 million dollars) in the previous period.
