The CEO of the Eastern Company for Tobacco, Hany Aman, said that the recent slight increase in Egypt’s cigarette prices was necessary.
The Eastern Company in Egypt approved the new cigarette price list in its meeting last Tuesday, for all the company’s products of Cleopatra cigarettes and other brands, in accordance with the provisions of the Value Added Tax Law #177 of 2013.
During a phone-in with Al-Hadath Al-Youm satellite channel, on Monday, Aman noted an increase in raw material prices by a percentage ranging between 60 percent and 70 percent, in addition to the change in the US dollar exchange rate from LE30-50 pounds, prompted the company to take the decision to increase prices.
Is there a new increase in cigarette prices?
Regarding the news circulating about the possibility of raising cigarette prices again, Aman said that the company reviews the cost every month, during the current time, compared to three months previously, due to the rapid changes.
He added that there is a specialized committee that reviews the costs and their impact on the company’s financial statements, and submits a report with the proposals to the Board of Directors, which makes the decision based on the point of view of the partners or founders.
The CEO of Eastern Company continued: “The last thing we do is to think about the increase, but we are forced to do so when there is pressure on costs. The last increase was postponed as much as we could, but it was required two or three months ago.”
