British American Tobacco Raises Cigarettes Prices in Egypt

British American Tobacco announced an increase in the prices of its cigarette products between EGP 1-3 per pack, as of today, according to the company's price list.

SeeNews analysts contribute the increase to the company's exit from the Russian market, amidst the military operation against Ukraine, in an attempt to make up for its losses after losing such a large market.

Cigarette prices after the increase:

Dunhill: EGP 49, compared to EGP 47 before the increase.

Dunhill MasterBlend: EGP  41.

Kent: EGP 44 pounds compared to EGP  41 before the increase.

Viceroy: EGP 29, compared to EGP 28 before the increase.

Pall Mall: EGP 29, compared to EGP 28 before the increase.

Royals: EGP 21.

Ibrahim Imbabi, head of the Tobacco Division at the Federation of Industries said that the rest of the companies raised their prices by one pound per pack.

He added in previous statements that the companies' increase in prices came as a result of the record rise in shipping costs and the payment of tax fees directed to the Ministry of Finance.

Earlier this month, a number of tobacco companies had approved increases in the selling prices of cigarettes, initiated by the Eastern Company for Tobacco, which announced an increase in the prices of Cleopatra, Mondial, and Boston brands by EGP 1, and then Philip Morris announced an increase in the price of Merit by also EGP 1, and Marlboro by EGP 2.

Egypt consumes 4 billion packs of cigarettes with a total of 85 billion cigarettes, at a rate of 1.7 billion per week.

The Eastern Tobacco Company in Egypt produces cigarettes, pipe tobacco, cigars and molasses. The company’s market share is about 70%, compared to about 30% for foreign companies.

Egypt imports tobacco from “India, Africa, Poland, Greece, France, Germany and Bangladesh.”

In July 2021, Eastern Tobacco raised the prices of cigarettes by about EGP 1, in implementation of the Comprehensive Health Insurance Law, which decided to increase the prices of cigarettes in Egypt every 3 years. The Egyptian government owns 50.5% of the Eastern Company for Tobacco, through the Holding Company for Chemical Industries.

The rest of the ownership structure is distributed at 6.1% to the Union of Contributing Workers, and 41% to freely traded shares on the stock exchange.