From the Daily News Egypt:
The 100 percent hike in the price of mazut (fuel oil) from LE 500 to LE 1,000 per ton caused a domino-effect in the market, elevating prices of building materials, sugar and paper.
The government’s decision sparked turmoil in sectors that heavily rely on fuel oil for production. Brick kilns producers were among the first to feel the effect, reporting a slump in sales after the price increase.
Producers explained that contracts with dealers were based on old prices but had to be modified after the mazut price increase, as it constitutes 45 percent of operating costs. Dealers, however, rejected the price change.
Prices of bricks have already gone up early this year to LE 515 per ton and then soared to LE 1,020, following the mazut price upsurges.
The decision has also adversely affect prices of cement, which have been rising almost steadily to LE 410-420 per ton. The price hike is expected to heavily impact the country’s housing market.