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The edible oil market in Egypt is currently navigating a period of heightened sensitivity as price movements become increasingly decoupled from local production factors and more tightly bound to foreign exchange rates and raw material procurement costs. Amidst global trade disruptions and logistics risks, local bulk oil prices climbed by 1,500 EGP per ton over the past week. This surge brought the price of bulk edible oil to 69,000 EGP per ton, up from 67,500 EGP at the beginning of October, coinciding with the US Dollar surpassing the 52 EGP threshold against the local currency.
Sayed Basyouni, a member of the Oils Division at the Federation of Egyptian Industries, explained that sector companies operate on a periodic cost-calculation model that accounts for international commodity exchange prices and exchange rate volatility. He highlighted that the 26th of each month serves as a fixed date for reviewing production inputs to determine their impact on final pricing. According to Basyouni, at the time of his statement, no new price hikes had been implemented for bottled products; a 1-liter bottle of blended oil remains at 85 EGP, while the 700ml bottle is priced at 65 EGP. He emphasized that prices printed on packaging remain mandatory for retailers to ensure consumer protection.
Regarding supply security, Basyouni noted continuous coordination with Dr. Sherif Farouk, Minister of Supply and Internal Trade. A dedicated operations room involving sector companies is working to maintain strategic reserves and mitigate potential supply chain disruptions, particularly those stemming from regional tensions affecting maritime corridors like the Bab al-Mandab strait. These measures aim to ensure market availability despite external shocks.
These price developments align with broader inflationary trends reported by CAPMAS, which indicated that the oils and fats category saw a 5.5% annual increase in September, with a slight monthly rise of 0.3% compared to August. As currency and cost pressures persist, the industry remains focused on balancing supply continuity with price stability ahead of the next round of cost assessments.
Source: Alam Al-Mal