Following the announcement by the Egyptian Cabinet to increase the price of a subsidized loaf of bread to 20 piastres starting from the beginning of June, rumors began circulating on social media regarding a decision to reduce citizens' share of subsidized bread on ration cards. The media center of the Cabinet contacted the Ministry of Supply and Internal Trade, which denied these claims, affirming that there was no truth to the reports about reducing citizens' share of subsidized bread on ration cards. The Ministry emphasized that the distribution of the citizen's share of subsidized bread continues as usual, amounting to 5 loaves per day, totaling 150 loaves monthly, at the price of 20 piastres per loaf, with no reduction in either quantity or weight.
The Ministry of Supply indicated that the loaves provided on the ration card throughout the month are calculated through accumulated points, allowing cardholders to redeem the difference in bread points for food and non-food items at various supply outlets. They urged citizens to file complaints in case bakeries do not adhere to providing the designated number of subsidized loaves per individual on their ration cards.
In regards to the price increase of the loaf, Mustafa Madbouly, the Prime Minister, announced that the government had decided to raise the price of a subsidized loaf of bread to 20 piastres starting from June, confirming that the state still subsidizes the loaf by 105 piastres, with the total subsidy amounting to around 105 billion Egyptian pounds.
During a press conference, Madbouly explained that the Egyptian state has managed to bear the maximum possible burden, stating, "However, we must begin, simply, calmly, and gradually, to move some goods and services so that we can sustainably provide the best possible support and services to the Egyptian citizen."
Madbouly noted that the subsidized bread price had not been adjusted for over 30 years, during which the price of bread had increased several times, adding, "Thus, this has placed an increasingly heavy financial burden on the state. Therefore, our aim is merely to slightly reduce this support."
The Prime Minister further stated, "The cost of a loaf of bread for the Egyptian state today is 1.25 pounds, sold at 5 piastres, meaning the state bears 120 piastres per loaf. With an average of approximately 100 billion loaves annually, this translates to over 120 billion pounds in subsidy for bread from the state. Hence, a move in this area was necessary merely to lessen the subsidy."
