The recent Cabinet decision to cut fuel subsidies obliged Abu Kir Fertilizers Company to decrease the prices of its products, the company’s Head, Saad Abu El Maati, stated, according to Al Mal News.
“Any increases in the outputs prices shall be generated by rising costs of transports. Although the Ministry of Agriculture is charged with conveying AKF’s products to warehouses, it rejected our advice to utilize railways to do the job,” Abu El Maati explained.
“Owing to rising expenditure, raising prices of fuels will have negative impact on AKF’s balance sheet as compared with the same period in the last fiscal year. The company prefers to cut profitability than to drive up prices,” he added.
Abu Kir covers 60% of Egypt’s agricultural needs. As a fertilizer company, it is committed to a ministerial decree, which obligates it to have 55% of its production to cover domestic demands.