In response to the recent liberalisation of the exchange rate, Eastern Company has announced an adjustment in the pricing of its entire range of cigarettes, tobacco, and shisha products. The price hike varies from EGP 2.5 to EGP 5 for each pack, depending on the brand. This adjustment has resulted in the price of a “Cleopatra” cigarette pack increasing to EGP 34.5 from the former EGP 30.
Hany Aman, CEO and Managing Director of Eastern Company, explained that the revision in cigarette product prices is a direct consequence of the substantial rise in the cost of raw materials denominated in foreign currencies, following the alteration in the official exchange rate of the Egyptian pound.
As per the new price list set to take effect on Sunday, 14 April—details of which were acquired by Daily News Egypt—a “10” cigarette box will now be priced at EGP 24.5, marking an increase of EGP 2.5. The “Cleopatra” brand, encompassing its King Size, Soft Queen, Box, Super, Black Label, and Matsoon Super variants, will see a price tag of EGP 34.5 per pack, reflecting an approximate rise of EGP 4.5. Meanwhile, Viceroy Pall Mall is expected to retail at about EGP 55.
The Egyptian Tax Authority has recently sanctioned tax reforms that permit a maximum surge of 12% across all cigarette price brackets, effective roughly a week prior.
These reforms also entail the expansion of the taxed cigarette price brackets, incorporating an annual increment of the maximum price bracket by 12% over five years.
Aman reiterated that Eastern Company regularly evaluates its pricing strategy in alignment with market dynamics. He highlighted the existence of a dedicated committee within the company tasked with reviewing market conditions every quarter.
He also disclosed to Daily News Egypt earlier in April that the company’s pricing had remained unchanged since the pound’s exchange rate was liberalized, up until the present adjustments.
