Ahmed Kamel – Egypt Daily News
Egypt will maintain the price of its heavily subsidized bread despite a recent rise in fuel costs of up to 17 percent, officials confirmed on Tuesday. Sherif Farouk, the Minister of Supply, stated that the government will continue to absorb higher production costs, including those resulting from increased diesel prices, to protect consumers from additional financial burdens.
The decision comes amid regional energy disruptions linked to the ongoing US-Israeli war on Iran, which has led to rising oil and gas prices globally. Prime Minister Mostafa Madbouly said the government would implement precautionary spending rationalization measures to navigate these pressures while safeguarding essential services and social support programs.
Subsidized bread is a cornerstone of Egypt’s social safety net, benefiting more than 70 million citizens through a ration card system. The program produces approximately 100 billion loaves annually and costs the government around 120 billion Egyptian pounds each year.
Maintaining bread prices is politically sensitive in Egypt. Past attempts to adjust subsidies, including the 1977 bread price hike, triggered widespread unrest. Although Egypt has gradually reformed fuel and electricity subsidies in recent years under conditions linked to International Monetary Fund (IMF) support, the bread subsidy has traditionally been preserved as a key measure of social stability.
By keeping bread prices steady, the government aims to ensure that the country’s most vulnerable populations are shielded from the indirect impact of higher energy costs, even as global market pressures continue to mount.
This move underscores the importance of bread subsidies in Egypt’s social and political landscape, demonstrating a continued commitment to balancing fiscal pressures with the need for social protection.
