Eastern Company increases cigarette prices to cover fuel, electricity price hikes

Alyaa Stohy
7 Min Read

Eastern Company announced it will increase the prices of some of its products in accordance with the application of the value-added tax (VAT) law, by rates ranging between 4.5-6% as of 14 August, excluding popular types of cigarettes, which represent more than 99% of consumption in the Egyptian market.

The company added in a statement that it was decided to increase the prices of all Mondial types from EGP 16.5 to EGP 17.5.

It was also decided to increase the prices of Black Label cigarettes from EGP 22 to EGP 23.

Osama Fouad, head of Financial Accounts Sector & IRO, said the decision was driven by the increase in production costs, especially after the recent hike in electricity and fuel prices.

He explained that the price increase, which was only EGP 1, will be imposed on two types of local cigarettes, and will be divided into 50 piasters to be added to the company’s revenues and 50 piasters for the state. Fouad said the price increase is not linked to the planned tax on cigarettes, which is expected to be discussed by the Parliament in its upcoming legislative round starting in October, to balance out costs and revenues.

Fouad revealed that his company will increase the prices of cigarettes again this year by EGP 0.5-1 for the pack, after the approval of the new tax, and the increase will be divided into 50 piasters in the company’s revenues and 50 piasters for the tax.

As for the rest of the cigarettes, they witnessed stability in prices, as Mondial cigarettes costs EGP 17.5, Black Label for EGP 23, Cleopatra Box for EGP 17, Cleopatra Queen Soft for EGP 16, Cleopatra Super for EGP18, blue and yellow Merit for EGP 42, L&M for EGP 29, and Golden West for EGP 22.

Boston Light Belmont costs EGP 17.5, Marlboro (Red-Gold) for EGP 39, Kent and Davidoff for EGP 37, Marlboro Medium for EGP 35, Dunhill for EGP 40, Camel for EGP 34, Lucky Strike for EGP 29, Rothman and Winston for EGP 27, Next for EGP 25, and Pall Mall for EGP 24.

Cigarette prices over the past five years has seen several increases, as President Abdel Fattah Al-Sisi issued the Law No. 58 in July 2014, imposing a tax of 50% on the selling price of cigarettes for consumers; 175 piasters per pack on cigarettes whose prices do not exceed EGP 9, 225 piasters per pack on cigarettes whose prices range between EGP 9-15, and 275 piasters per pack on cigarettes whose prices exceed EGP 15.

After applying these increases, Cleopatra Box (Red, Blue, white, and silver) to be sold for EGP 8 instead of EGP 7, and the Super Star’s price increased to EGP 8.5.

In February 2015, President Al-Sisi issued a decree No. 12 of 2015 amending some provisions of the General Sales Tax Law No. 11 of 1991, increasing the value of the tax imposed on cigarettes.

Marlboro, Merit, Kent, Dunhill, Davidoff, and Camel were sold for EGP 23, while Rothman, Gauloises, and Winston cost EGP 16 per pack. The price of Next and P&S reached EGP 15. Prices of Viceroy and Rothman (a pack of 10 cigarettes) reached EGP 13 and EGP 8, respectively, while the prices of Cleopatra Golden – Florida paper (Light – Florida – Mondial – Belmont – Boston – Hollywood – Capital) reached EGP 9.

The price of Cleopatra Box (white, blue, red, and silver) reached EGP 9, while Cleopatra Black Label reached EGP 13, and Super Star reached EGP 10, while Cleopatra Box Queen reached EGP 10.

In 2016, the price of Cleopatra rose from EGP 8.50 to EGP 10.50; Cleopatra Queen from EGP 9 to EGP 10.50; Cleopatra Super from EGP 10 to EGP 12.50; and Boston, Light Belmont, and Mondial from EGP 9.50 to EGP 12; and Cleopatra Black from EGP 13 to EGP 16.

In 2017, the prices of cigarettes rose more than once. In February, Eastern Company raised the price of Cleopatra Box by 75 piasters as the price of white Cleopatra Box rose from EGP 12 to EGP 12.75, and increase West price by 50 piasters as the prices of red and blue West rose from EGP 14.50 to EGP 15.

In March of the same year, Eastern Company announced that it raised the selling prices of Cleopatra Box by 75.75 piasters, to reach EGP 12.75. Afterwards, in July of the same year, the company announced increasing the prices of two other types: Viceroy Light from EGP 17 to EGP 18, and Viceroy filter from EGP 17 to EGP 18.

On 21 November 2017, the Parliament approved a new price increase, with a tax of 350 piasters per pack, on cigarettes whose prices range between EGP 18-30, and 650 piasters per pack on cigarettes whose prices exceed EGP 30.

In July 2018, the price of Cleopatra Box rose to EGP 17 per pack instead of EGP 15.5, and the price of Cleopatra (regular) by EGP 16 instead of EGP 14.5. This type of cigarettes is the cheapest in Egypt. Additionally, the prices of Black Label cigarettes increased by EGP 3 from EGP 19 to EGP 22.

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