Fuel price hikes to have a ‘limited impact’ on Egypt industrial sector: AmCham

Few hours after Egyptian government just announced new fuel price increases, the president of the American Chamber of Commerce in Egypt (AmCham) says there will be a ‘limited impact’ on the industrial sector.

Egypt’s government early Thursday increased gasoline and diesel prices in the second fuel hike since a currency floatation and the latest cut in state subsidies to ease the budget deficit.

Fuel price increases had been widely expected as part of Egypt’s $12 billion International Monetary Fund loan programme, but the hikes were bigger than anticipated by Egyptians already hit by a weaker pound currency and higher living costs.

Tarek Tawfik, AmCham president, further told Amwal Al Ghad on Thursday the fuel price hikes would not lead to a dramatic increase in the prices of materials used in manufacturing the industrial products in the coming period.

The latest fuel price hikes are an ample testimony that the Egyptian government is determined to continue adopting its economic reform programme, which will in return boost the foreign investor confidence., Tawfik said.