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Alexandria Vegetable Oils Extraction Company, producer of the popular cooking oil brands 'Shatara' and 'Solo', has suspended sales of its products in the local market since last Sunday. This decision has led to the emergence of a black market where these products are being sold at prices slightly above the official rates, according to several traders and officials from oil bottling companies in the Egyptian market, as reported by 'Mal & Aamal - Al-Shorouk'.
The Alexandria Vegetable Oils Extraction Company holds the largest share of cooking oil sales in the local market, primarily due to the lower prices of its products compared to those offered by competitors 'Arma' and 'Savola'. A one-liter bottle of 'Shatara' or 'Solo' oil typically sells for EGP 70, whereas competitor brands like 'Mumtaz' and 'Helwa' are priced at EGP 85 per liter.
The company's decision to halt sales coincides with a significant surge in bulk soybean oil prices, which have increased by over 11% in the past week, pushing the price per ton to EGP 69,000, up from EGP 61,000 at the beginning of last July.
Informed sources revealed that the company suspended sales in an attempt to re-evaluate its pricing strategies, indicating that it is awaiting market stabilization before resuming distribution.
A field survey conducted by 'Al-Shorouk' in several markets across Greater Cairo observed that the price of a carton of 'Shatara' or 'Solo' oil had risen from its official price of EGP 800 to EGP 820, attributed to the reduced supply of these products in the market.
Several traders noted that the impact of the sales halt remains limited so far due to prevailing market stagnation. However, they warned that if the company continues its sales suspension for another week, it could lead to a doubling of the official price of the oil cartons.
In contrast, competing companies such as 'Arma' and 'Savola' have not ceased their sales during this period. Officials from the Foodstuffs Division of the Federation of Chambers of Commerce confirmed the continued supply operations from these two companies.
The division officials clarified that the primary reason for 'Arma' and 'Savola' maintaining their supply is that they already sell their oil bottles at higher prices, with a one-liter bottle fetching EGP 85.
They further added that the successive price increases observed in the oil markets are 'unjustified', especially given the declining global prices over the past period. They suggested that major companies are attempting to manipulate prices in their favor.
Globally, soybean oil prices on international exchanges decreased by over 8% last month, reaching 67 cents per pound (with one ton equivalent to 2200 pounds) by the end of the month, compared to 74 cents per pound in early July 2026.
Furthermore, the decline in global vegetable oil prices contributed to a 0.3% drop in the FAO's global food price index in June 2026 compared to May, as concerns over the conflict in the Middle East diminished. According to the FAO report, global sunflower oil prices remained generally stable, while global soybean oil prices saw a marginal decrease, influenced by increased seasonal supplies from South America and lower crude oil prices.
Source: Al-Shorouk Portal