Egypt's doubled rations no cause for celebration as prices set to soar
The Egyptian government has doubled rations for millions of citizens even as the new budget outlines a plan to reduce and eventually eliminate subsidies altogether.
CAIRO — President Abdel Fattah al-Sisi issued a decision June 20 increasing individual monthly ration allocations from 21 Egyptian pounds ($1.16) to 50 ($2.80). Until 2017, 71 million people used government subsidy cards to buy food staples, Egyptian Minister of Supply Ali Moselhi said in a press statement in March.
The move comes at the same time that Egypt is working to meet economic reforms stipulated in the terms of a $12 billion loan from the International Monetary Fund (IMF). On July 14, the IMF announced that it had approved releasing $1.25 billion to Cairo as the final installment of the second portion of the overall loan.
Following the president's decision, every registered card holder will benefit from additional basic subsidies worth 25 pounds ($1.40), bringing the total subsidies per person to 50 pounds for up to four people registered on a single family ration card. A family of more than four will receive only 25 pounds for each additional member. The decision did not specify a maximum number of family members eligible for food subsidies.
Some observers, however, believe that the move will likely lead to an increase in the prices of goods, as more than doubling ration allocations for most recipients does not go in line with Sisi’s economic plan to reduces state subsidies.
