Mohamed Seif El Din - Cairo
The 40-year-old Zia al-Sayyid Hala found only more austerity to reduce his expenses on the impact of the high prices that hit the country now, after successive increases in prices of goods and services in Egypt after the fuel prices.
The Egyptian government raised fuel prices last Friday by 16 percent to 30 percent as part of a plan to lift fuel subsidies, according to the International Monetary Fund (IMF), which has lent Cairo $ 12 billion over the past three years.
This is the fifth time that the Egyptian authorities have raised fuel prices since July 2014, bringing the cumulative increase to about 244%, according to Al Jazeera Net correspondent.
Among the austerity measures taken by Zia, the preservation of old things and not buy the new only in case of extreme necessity, explaining to the island Net that the current prices are no longer at hand.
| More austerity is the only solution for Egyptians to face rising prices after the new increase in the price of fuel (Al Jazeera) |
"He is seeking to provide a third job to manage the needs of his home," said the Egyptian al-Fathini, who works for the government telecommunications company in the morning and a cook in private restaurants. He said that his income in the past was enough, although he did not exceed four thousand pounds. Less than five thousand pounds a month (the dollar about 17 pounds) to meet the needs of his home and the expenses of his three children.
While civil engineer Rauf Al-Sawy plans to sell his car, stressing that he began to rely on the nearby traffic on the bike, while using public transport to go to work, to provide the price of gasoline, which is available to the wealthy only, according to his opinion.
Al-Sawy explained to Al-Jazeera Net that the car is not the only thing that began to be abandoned after the increase in fuel prices and rising prices. He also resorted to canceling the summer vacation in one of the resorts or going to the club weekly and only once a month, At a time when his salary has not moved since the last increase last year.
Food, fruit and vegetables will have a lion's share in the new increase by up to 30% (island) |
Although the Egyptian government has confirmed that the rate of increase in prices will not exceed 10% after the movement of fuel prices, the prices of vegetables and fruit will have the lion's share of the impact, where it appears that the rate of increase may not fall below 30%.
He attributed three farmers in the city of Nubaria in the province of the lake north of Egypt, to increase the cost of agriculture, explaining to the island Net that the acres of tomatoes and potatoes will cost after raising fuel prices about 55 thousand pounds, after 35 thousand pounds in the past.
Despite the recession in the real estate market, construction workers confirmed to Al-Jazeera Net that prices will increase by 20% after fuel prices move, which is always followed by new increases in the prices of iron, cement and bricks as well as finishing materials.
The price of a kilogram of white poultry has risen by 40 pounds in the market after it was sold at about 35 pounds, According to a tour of Al Jazeera Net.
| Public and private transport costs increase after fuel price rises (Reuters) |
Was the increase necessary?
Minister of Finance Mohammad Muait explained that the rationalization of energy subsidies "petroleum and electricity" provided 84 billion pounds this year from last year's budget.
The Egyptian minister said that this contributed to an unprecedented increase in the financial allocations for health to LE 124.9 billion, the pre-university education sector 134.8 billion pounds, higher education 67 billion pounds, wages 301 billion pounds and 9.7 billion pounds For medicines compared to 7 billion pounds last year's budget.
The budget of the new fiscal year 2019-2020 saw a reduction in petroleum subsidies from 89 billion pounds to 53 billion pounds. In October, the government intends to implement the automatic pricing mechanism for petroleum products with a view to linking them to international prices.
| Prices of electrical appliances will increase by at least 10% (island) |
For his part, said the economic expert Ahmed God said that the Egyptian authorities had the opportunity to postpone this increase or raise it twice in order to preserve the interest of the Egyptians and not burden them with more high prices, a reference to the stability of global fuel prices.
Despite the government's announced figures for education, health and social programs, the Egyptian expert questioned the government's intentions and ability to provide support to its beneficiaries.
In his speech to Al-Jazeera Net, he pointed out that there are no effective government programs in achieving social justice in Egypt. He pointed out that the only existing government program is Takaful and dignity. It is concerned with poor families that have three children and gives them 325 pounds per month, .
As to the extent to which the Egyptians are affected by the rise in fuel prices, God mentioned that official and other economic estimates confirm that the poverty rate in Egypt will increase by 10% to 70%.
In May, the World Bank confirmed that about 60 percent of Egypt's population was either poor or more needy.