2024/10/21

Matta Beshay warns of soaring inflation amid fuel price hike

Matta Beshay, the head of the Internal Trade Committee at the Importers Division of the Federation of Egyptian Chambers of Commerce, stated that Prime Minister Dr. Moustafa Madbouly's remarks during his visit to Minya Governorate in Upper Egypt were characterized by frankness and transparency regarding Egypt's economic situation and the impact of recent fuel price increases on the Egyptian market. While acknowledging the Prime Minister's honesty, Beshay expressed concern that his statements were not reassuring to the majority of Egyptians who have been struggling with rising prices. He warned that fuel price increases would inevitably lead to higher inflation and prices.

Beshay said in press statements Monday: "We are well aware of the burdens that the state has and continues to bear as a result of the huge increases in the prices of petroleum products and fuel, in light of the global political tensions that have affected supply chains and the import of many products, including gas. The state has indeed taken measures to secure additional resources to ensure that there is no power outage again, as happened during the load shedding, which greatly affected Egyptian life."

He asserted that even gradual increases in fuel prices, as announced by the government for the period ending in 2025, would make it challenging to control prices and maintain market stability. Therefore, the government must implement stricter market oversight and ensure a consistent supply of goods to meet consumer demand. This will help prevent shortages and discourage merchants from exploiting consumers through price manipulation.

Beshay urged the government to reconsider recent fuel price increases and avoid implementing any new ones for the next six months. He argued that this would allow the market to adjust to the recent changes, stabilize prices, reduce inflation, and ease the financial burden on low-income citizens. Additionally, he called for a more balanced approach to pricing essential services like electricity, water, and gas.