Increased Penalties on Misappropria

In advance of the next round of subsidy cuts and fuel price hikes, Parliament has amended[1] the Supply Law[2] and the Competition Law[3] to raise the penalties for stockpiling, diverting or misappropriating subsidized goods to up to five years in prison with a maximum penalty of EGP 1 million. The amendment also extends these penalties to stockpiling of subsidized petroleum products. The new crime penalizes vendors not only for hoarding or refusing to sell subsidized goods distributed by the government, but also for refusing to receive their share of the goods without cause, or making any statement that could affect the price or availability of a subsidized good. The penalty for smuggling subsidized goods out of the country has also been raised to a maximum of 7 years and/or a maximum fine of EGP 1 million as well as double the price of the smuggled goods. The Competition Law was similarly amended to introduce a new penalty of a fine between EGP 100,000 to EGP 5 million for violating ministerial decrees with fixed prices for essential goods; and charges are not withdrawn in the event of settlement.   [1] Law No. 15/2019 amending certain provisions of Law No. 95/1945 on Supply and Law No. 3/2005 on the Protection of Competition and the Prevention of Monopolistic Practices, Official Gazette, Issue No. 14 (bis), 8 April 2019 [2] Law No. 95/1945 on Supply, Egyptian Supplement, Issue No. 145 (bis) (a), 6 October 1945. [3] Law No. 3/2005 on the Protection of Competition and the Prevention of Monopolistic Practices, Egyptian Gazette, Issue No. 6 (bis), 15 February 2005.