Egyptian cigarette and tobacco prices have recently witnessed a new increase, which came into effect on Thursday, April 6. Philip Morris-Egypt announced the new price list for its cigarette and heated tobacco products, with prices ranging from EGP 39 to EGP 59 per consumer.
The company stated that the price hike is due to the foreign currency crisis and the rise in production requirements. In this article, we will dive deeper into the details of the price increase and its implications.
Why have cigarette and tobacco prices increased in Egypt?
Ibrahim El-Embaby, the head of the tobacco and shisha department at the Chamber of Food Industries at the Federation of Industries, revealed that the price hike is mainly due to the foreign currency crisis and the rise in production requirements.
The tobacco industry in Egypt heavily relies on imported materials, including tobacco, filters, and paper, which are usually paid for in foreign currency. As the value of the Egyptian pound declines against major currencies, the cost of importing these materials increases, leading to higher production costs and, in turn, higher prices for consumers.
Which cigarette and tobacco products are affected by the price increase?
Philip Morris-Egypt clarified that the products affected by the new price increase include three types: Merit, L&M with their variations, and Marlboro. The new prices will be implemented starting from Thursday, April 6.
The New Cigarettes Prices in Egypt:
- Merit (all types): EGP 59.
- Marlboro Red: EGP 54.
- Marlboro Gold: EGP 54.
- Marlboro Kretek with their variations: EGP 44.
- L&M Red Label: EGP 39.
- L&M Blue Label: EGP 39.
- L&M Silver Label: EGP 39.
- L&M Forward: EGP 39.
It is worth mentioning that other tobacco companies may follow suit and raise their prices as well, as they face similar challenges in terms of production costs and foreign currency fluctuations.
The new price increase may have various implications on different stakeholders in the tobacco industry. On the one hand, tobacco companies may benefit from higher profit margins, as they compensate for higher production costs with higher prices. On the other hand, consumers may be discouraged from buying cigarettes and tobacco products, especially as the price of cigarettes in Egypt is already high compared to other countries.
Moreover, the price increase may have health implications, as higher prices may deter people from smoking or encourage them to quit. This may lead to a decline in smoking rates, which could have positive long-term effects on public health, such as reducing the incidence of smoking-related diseases.