In a recent announcement, Egypt has witnessed a new round of price increases on foreign cigarette brands, with several popular products now seeing significant hikes in prices. The price adjustments, ranging from 12% to 15%, are a result of rising manufacturing and shipping costs, driven by fluctuations in the exchange rate, higher tobacco and raw material prices, and ongoing logistical challenges.
- 12% Price Hike: Leading cigarette brands, including those from Mansour International Cigarette Distribution Company and JP International Tobacco Company, have raised prices by about 12%.
- New Price Ranges: The price of brands like Target and Time Select cigarettes has risen to EGP 38.75. Gold Coast cigarettes, produced by JP, now retail at EGP 42 per pack.
- Eastern Company Adjustments: In addition to these changes, the Eastern Company, a major local manufacturer, has also raised its cigarette prices to offset increased production costs, including rising tobacco prices and the impact of the fluctuating Egyptian pound.
- Philip Morris Price Updates: Philip Morris Egypt has also updated the prices of its products, including both traditional cigarettes and heated tobacco options. The new prices are transparently displayed through QR codes on product packages.
New Prices for Popular Cigarettes:
- Merit (all types): EGP 95 per pack
- Marlboro (all types): EGP 89 per pack
- Marlboro Crafted (all types): EGP 74 per pack
- L&M (all types): EGP 69 per pack
- HEETS (all types): EGP 69 per pack
- TEREA (all types): EGP 69 per pack
- Target and Time Select: EGP 38.75 per pack
- Gold Coast: EGP 42 per pack
Factors Driving the Price Increase:
- Currency Fluctuations: A significant factor contributing to the price increase is the changing exchange rate between the Egyptian pound and foreign currencies, particularly the US dollar.
- Raw Material and Shipping Costs: The rise in the cost of tobacco and other materials used in cigarette production, combined with higher shipping costs due to global logistical disruptions, has placed pressure on manufacturers to raise their prices.
Impact on Consumers and Retailers:
- Consumer Reaction: Smokers in Egypt will now face higher prices for both traditional and heated tobacco products. These price hikes come amid broader economic challenges in the country, making affordability a concern for many consumers.
- Retailers and Distributors: Philip Morris Egypt has called on retailers and distributors to adhere to the new prices to maintain consistency across the market.
This price adjustment marks the latest change in the ongoing evolution of Egypt’s tobacco market, which has seen fluctuating prices over the past few years due to economic factors. As Egypt continues to face challenges in the broader economic landscape, these price hikes are expected to be part of a larger trend as industries adjust to inflationary pressures.
