Profiteering

[newcastle]

It hasn't taken long for people to jump on the fuel price hike to make a bit "extra". Here in Hurghada bus prices went up 50% yesterday....notwithstanding that fuel represents a much smaller percentage of the cost of the service.

Sand ,which I require for a small building project, and has to come from Qena, suddenly costs 30% more per tonne than it did 2 days ago. The reason given? Higher delivery costs. When I queried the level of the increase I was met with shrugged shoulders and "take it or leave it". A few phone calls indicated all the sand merchants have climbed on this bandwagon.

Reminds me a bit of all the profiteering which went when I lived in Spain at the time they changed from the peseta to the euro.

Price rises are inevitable, and painful for many, but this adds insult to injury.

[carrie]

Just got back from Hurghada the hotel I was staying in was miles away from anywhere but had a pharmacist on site, I needed some tablets that I buy here in Luxor for 8le went in the pharmacist and the price in there was 75le, I couldn't believe it told the pharmacist and he said well that is the price here. Captive audience. He said his rent was so high there he had to charge more, over ten times more? Did without the tablets.

[Bombay]

Its against the law for a pharmacy to charge anymore than the price printed on the medicine.

Its not profiteering to increase prices if costs go up. People will possible absorb small increases in costs over a period of time but there comes a point when that has to stop and you need increase your price. Prices for everything will be going up because of the fuel increase and the cost for transport increases.

[newcastle]

Its against the law for a pharmacy to charge anymore than the price printed on the medicine.

Its not profiteering to increase prices if costs go up. People will possible absorb small increases in costs over a period of time but there comes a point when that has to stop and you need increase your price. Prices for everything will be going up because of the fuel increase and the cost for transport increases.

It IS BLATANT PROFITEERING when you increase your prices way beyond the level to recoup the additional fuel costs imposed yesterday.

I expect you may need to increase your prices Bombay...the extra transport & knock-on effects on food costs etc. But I imagine, as a sensible and honest restauranteur, you will make any price rises commensurate with these additional costs and not follow the example of the buses & taxis in Hurghada and add 50% across the board.

[Bombay]

Its against the law for a pharmacy to charge anymore than the price printed on the medicine.

Its not profiteering to increase prices if costs go up. People will possible absorb small increases in costs over a period of time but there comes a point when that has to stop and you need increase your price. Prices for everything will be going up because of the fuel increase and the cost for transport increases.

It IS BLATANT PROFITEERING when you increase your prices way beyond the level to recoup the additional fuel costs imposed yesterday.

I expect you may need to increase your prices Bombay...the extra transport & knock-on effects on food costs etc. But I imagine, as a sensible and honest restaurateur, you will make any price rises commensurate with these additional costs and not follow the example of the buses & taxis in Hurghada and add 50% across the board.

Difficult situation Newcastle my menus are from Nov 2010 with very few price increases pened in. The biggest problem is the unlicensed tourist restaurants in town currently charging the same or more without the additional costs of the sales taxes and licensing fees and fire services charges. Its a very weak market and any price increases are very awkward at this time.

From what I understand fuel prices have increased by around 30% the sand is free from the desert it is only the transport that is paid for.

I expect the buses are going by next highest coinage and the taxis are metered and need to be reset by the Government

[Yildez]

Just got back from Hurghada the hotel I was staying in was miles away from anywhere but had a pharmacist on site, I needed some tablets that I buy here in Luxor for 8le went in the pharmacist and the price in there was 75le, I couldn't believe it told the pharmacist and he said well that is the price here. Captive audience. He said his rent was so high there he had to charge more, over ten times more? Did without the tablets.

This happens to tourists here in Turkey too. The correct price is imprinted on the end of the packet, but of course most don't know where to look. A couple of years ago I had a huge row in a local pharmacy when they tried to charge triple the correct price. Magically, the price was reduced to normal when I mentioned the Zabata (municipal police) - needless to say I refused, have never been in there again, and warn anyone who asks not to use them.

[Dusak]

I would like to say in the case of the tablets that he was probably struggling to recoup long lost profit margins from bygone times to pay his high rents when tourists were in abundance, a survival exercise, but I presume this hotel had sufficient business, if in the big H. So he was out of order. Six years ago while staying in an all inclusive hotel in Sharm, the local onsite shop was charging 100%+ compered to Luxor's prices, especially in the imported confectionery lines and cigarettes.

[Chocolate Eclair]

Wonder what the ferry and motorboats will go to? Petrol profiteering well not much different from the UK when they put the price up at 6pm one evening...

[Zooropa]

I don't know about Egypt, but in the UK, you are supposed to suspend the price increase until you have exhausted current pre tax increase stock, as CE pointed out, it does not stop some from increasing immediately, the irony is, in a lot of cases the shops are never as fully stocked as they are just after a price rise, having bought as much as they can just before the suspected price increase kicked in.

[Zooropa]

Its against the law for a pharmacy to charge anymore than the price printed on the medicine.

Its not profiteering to increase prices if costs go up. People will possible absorb small increases in costs over a period of time but there comes a point when that has to stop and you need increase your price. Prices for everything will be going up because of the fuel increase and the cost for transport increases.

It IS BLATANT PROFITEERING when you increase your prices way beyond the level to recoup the additional fuel costs imposed yesterday.

I expect you may need to increase your prices Bombay...the extra transport & knock-on effects on food costs etc. But I imagine, as a sensible and honest restaurateur, you will make any price rises commensurate with these additional costs and not follow the example of the buses & taxis in Hurghada and add 50% across the board.

Difficult situation Newcastle my menus are from Nov 2010 with very few price increases pened in. The biggest problem is the unlicensed tourist restaurants in town currently charging the same or more without the additional costs of the sales taxes and licensing fees and fire services charges. Its a very weak market and any price increases are very awkward at this time.

From what I understand fuel prices have increased by around 30% the sand is free from the desert it is only the transport that is paid for.

I expect the buses are going by next highest coinage and the taxis are metered and need to be reset by the Government

Ok, im sure most people know but for my benefit, why don't the authorities move in and shut these places down?

Not only are they stealing from the Government bust also from the customer and the other premises which play by the rules.

I cant imagine the authorities in most other countries allowing open tax evasion to continue.

You have my sympathies Bombay.

[Scottishtourist]

Been watching news reports on this.
It seems to have sparked off outrage and cigs and alcohol taxes have also been increased.
Given the high rate of poverty..how will the general public cope with these increases and the knock on effect it will have on everything else?

[Bombay]

I don't know about Egypt, but in the UK, you are supposed to suspend the price increase until you have exhausted current pre tax increase stock, as CE pointed out, it does not stop some from increasing immediately, the irony is, in a lot of cases the shops are never as fully stocked as they are just after a price rise, having bought as much as they can just before the suspected price increase kicked in.

Not sure about that the Chancellor usually states the date and time of the increase ie petrol from midnight etc as it does not matter about the stock the tax is for the government other increases will follow the suppliers increase.