(Ecofin Agency) - Prices of fruits and vegetables in Egypt have soared by about 20% as transportation costs also increased by 50% after the government decided to suspend subsidy on gasoline fuel and diesel fuel.

FreshPlaza,  recalling that transportation accounts for about 35% of total transportation costs of the commodities, said the price increase differs from one product to the other. It explained that a kilo of potatoes is sold at 8.5 pounds compared to 7 pounds before while tomato goes at 3.5 pounds a kilo from 3 pounds previously. As for onion, it is sold at 8 pounds the kilo against 7 pounds earlier.

The removal of subsidies is the second of the sort in Egypt, in less than three years after its government decided to apply this policy in 2014 to reduce its budget deficit.

Aaron Akinocho