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A responsible government source told Al Mal that Egypt’s Ministry of Supply and Internal Trade plans to organize a series of meetings next month with local edible oil companies and factories, along with representatives of the Holding Company for Food Industries and its affiliated companies.
The aim of the meetings is to discuss the possibility of applying new reductions to the prices of their products sold in the market.
The source said the meetings come as part of government efforts to ensure the availability of strategic commodities through cooperation between the public and private sectors.
During the meetings, the real production cost of different types of oils will be reviewed, including blended oil, sunflower oil, soybean oil, and corn oil. A suitable average profit margin for each product category will also be determined.
The source added that the meetings are expected to result in an agreement to offer quantities of oils at reduced prices. These quantities will be sold through one-day markets supervised by the ministries of supply and local development in the governorates, with prices around 20% lower than similar products in the local market.
The source confirmed that Egypt’s strategic stock of oils is in a safe position and is sufficient for up to seven months.
This stock will be strengthened by new contracts planned for the coming period, whether for local or imported crude oils, supporting reserves of this vital commodity.
Prime Minister Mostafa Madbouly chaired a meeting on Monday to follow up on efforts to provide strategic commodities in coordination with various government bodies.
Madbouly stressed that the government places great importance on supporting and securing strategic commodities, ensuring a permanent and sufficient stock while also pumping suitable quantities into markets to meet citizens’ needs and help control prices.
In a related context, Sayed Bassiouny, a member of the oils division at the Federation of Egyptian Chambers of Commerce, said oil prices declined by up to 15% during October.
This came during the supply minister’s meeting with the federation’s board in mid-month, where Bassiouny said the discounts would continue until the following November.
Bassiouny said the price of one liter of blended oil currently ranges between EGP 65 and EGP 68, adding that no price increases are expected in the markets until the end of next November.
Source: Al Mal