Lang
In a television interview on the "Eih El Hekaya" program broadcast on El Mehwar TV channel, Mr. El-Bassiouny, a member of the Oils Division and a prominent expert in the food industry sector, revealed important details and developments witnessed by the vegetable oil market in Egypt. The interview provided an accurate analytical reading of the reality and future of this vital sector in light of global economic and geopolitical challenges, shedding light on pricing mechanisms, the volume of domestic consumption, and the industry's flexibility in facing crises to ensure the stability of supplies.
Volume of Consumption and Significant Reliance on ImportsDuring the interview, El-Bassiouny explained that Egypt relies heavily on imports to meet its needs for vegetable oils, with the import rate ranging between 97% to 98%. These oils vary between "light oils" such as sunflower, soybean, and corn oils, and "heavy oils" such as palm oil and its derivatives like olein and super olein. This reliance is due to the difficulty of cultivating oil crops locally in quantities sufficient to bridge the gap at the current stage.
Consumption Boom with Population GrowthIn a quick historical comparison, he pointed out that Egypt's population in 1960 was about 26 million people, and the annual oil consumption volume was estimated at 540 thousand tons. Today, at the beginning of 2026, with the population reaching approximately 118 million people (including guests residing in Egypt), the volume of consumption has jumped to exceed 2.4 million tons annually. This number is expected to reach 2.6 million tons by 2030.
The Three Determinants of Oil Prices in EgyptGiven that the largest percentage of oils is imported in hard currency, El-Bassiouny indicated that prices in the Egyptian market are subject to three main factors:
A Transparent and Automated Pricing MechanismRegarding major companies, he emphasized that product pricing is done systematically and automatically, away from manual intervention. All costs and production inputs are entered into a dedicated electronic system, which then automatically calculates and issues the fair and final price of the product, whether for a bottle of oil or a tin of ghee.
The Sector's Flexibility in Facing CrisesEl-Bassiouny described the oils sector as highly flexible, praising its success in overcoming successive shocks over the past two years, starting from the COVID-19 pandemic crisis, passing through the Russian-Ukrainian war, and ending with the events in Gaza and regional tensions.
He attributed this success to the proactive doctrine of the political leadership and the Egyptian government, which always makes sure to anticipate crises with proactive steps. This was manifested in the expansion of establishing logistics warehouses and storing oils in customs departments and ports, such as the logistics warehouses in the "Adabiya" area designated for heavy oils like palm oil and its derivatives, in addition to other warehouses for light oils.
Recent Price Declines and Market StabilityThe television interview touched upon the period of hard currency fluctuation, where the market witnessed times when the dollar price reached record levels, causing the price of an oil bottle to exceed the 105 EGP barrier. However, thanks to the state's efforts in providing hard currency and stabilizing the exchange rate, prices have dropped significantly, with the bottle's price reaching 65 EGP.
El-Bassiouny concluded his speech by emphasizing that any movement in global prices or production costs immediately reflects on the local market, whether up or down, to ensure the continuous provision of fair pricing that reflects the true cost and aligns with market stability.
