clear

Creating new perspectives since 2009

Instead of pacifying their anger, Al-Sisi dismays Egyptians with his remarks about increasing prices

July 7, 2014 at 3:24 pm

Egyptians have lately been very angry at the government’s performance. Popular displeasure has been rising particularly since the decision to put up the prices of basic commodities, foremost among them is fuel, electricity and cigarettes, and the expected rise in the price of all commodities and services in the country.

Instead of seeking to moderate the rage of the citizens and calm their concerns about inflation, as is usually expected in such crises, observers say Egyptians were shocked by the attitude of senior officials foremost among them General Abdel Fatah Al-Sisi and the members of his government who went on issuing provocative statements that enraged their supporters let alone their opponents.

Al-Sisi started these weird and provocative statements during a meeting he held yesterday with reporters and journalists to discuss the manner of addressing the public reaction to the decision to increase prices. He said: “The decisions to put up the prices of fuel, electricity and cigarettes were aimed at protecting the Egyptians, especially those with low incomes, who are being defended by the state.”

When all the journalists present told him that the timing of putting up the prices was wrong and that it might cause severe crises for the regime, Al-Sisi replied that it was the Egyptian people who chose to put up the prices as a gesture of sacrifice for the sake of Egypt.

The rise in prices “cheapens” food commodities

Khalid Hanafi, the minister of supplies, came up the weirdest statement when he said: “The prices of commodities in the markets have not been affected by the rise in the price of petrol and diesel. To the contrary, the prices of some fruits and vegetables have ‘come down’ despite the rise in the cost of fuel.”

Hanafi stressed, in a TV interview, that prices will not go up as had been rumoured by some merchants who are merely using the rise in fuel prices as a pretext, as he put it.

The minister stressed that the prices of all food commodities will not rise in the future as a result of the rise in fuel prices. He explained that he met with food stuffs producers and owners of big stores and transport companies who assured him that they would not put up the prices.

He did not explain how it would be possible to ensure this what he would do if merchants disagreed with him. This is exactly what happened within the past few hours, and that is what upset citizens even further, as some have said the government has sold them to the greedy merchants.

Raising prices is good

Prime Minister Ibrahim Mahlab has said that merchants pledged to exercise a high patriotic spirit by maintaining prices for the time being. He stressed that many parties have stressed that there would be no increase in the price of food commodities and that some merchants affirmed to him that they are in the process of lowering prices despite the increase in the cost of transport due to the rise in fuel prices.

Last Friday, Mahlab said that he had met with representatives of microbus drivers in the presence of a number of ministers who assured him there would be no more than a 10 per cent rise in bus fares. Only one day following Mahlab’s statements, Egyptians went out to find that the microbus drivers had increased fares by as much as 100 per cent in some cases.

Mahlab argued that only those with more than one car would bear the cost of the increase in fuel prices, those who own microbuses would not be affected. He added that the price will rise in the case of citizens who are most in need but the services they receive will eventually make them the beneficiaries.

The prime minister said that in the aftermath of putting up electricity prices all citizens will rush to switch lights off to reduce their consumption.

Mahlab called on Egyptians to contemplate the positive aspects of putting up fuel prices. He said that the money that will come from putting up the prices will be spent on decaying institutions such as those of health and education.

He said the government will not be intimidated by the loud voices and criticism that followed putting up the prices of fuel and electricity.

The poor have no cars

Ambassador Hossam Al-Qawish, cabinet spokesperson, spared no effort to provoke the citizens when he said that the poor in Egypt will not be affected by the rise in the price of petrol and diesel because they own no cars.

He added that the past years witnessed a rise in poverty levels despite the subsidies the government provided to the poor. Some interpreted this as meaning that the government intends to end poverty by cancelling all forms of subsidies.

Investment Minister Ashraf Salman praised the recent government decisions stressing that they aim to attract investment into Egypt in the coming period.

He explained that putting up the prices of fuel or removing subsidies from electricity and energy will not drive investors away because investors search for energy and don’t consider its cost.

Electricity Ministry spokesperson Muhammad Al-Yamani said that the rise in electricity prices will contribute to reducing the frequency of blackouts. He explained that putting up the price of electricity will save 10 billion Egyptian pounds ($1.4 billion), which will be funnelled to help those with low incomes. He did not explain how this will happen.

In a TV interview, Al-Yamani stressed that 57 per cent of citizens’ domestic consumption will increase in price by no more than 1.6 per cent of what is paid monthly. His assertion contradicts reality where almost all Egyptians complain about substantial increases in their electricity bills.

Translated from Arabi21, 7 July, 2014