Production Ministry Explains Why Cement Price Surged by 19.6% in PTI Govt

The price of cement has been increased by 19.62 percent during the current government’s tenure, admits the Ministry of Industries and Production.

The Ministry informed the National Assembly on Friday that the price of cement increased by 19.62 percent during the incumbent government tenure from Rs. 586/50-kg in August 2018 to Rs. 701/50-kg in October 2021.

Responding to a question, the Ministry stated that the reasons for the increase in cement prices as conveyed by All Pakistan Cement Manufacturers Association (APCMA) included a significant increase in prices of coal, exchange rate impact of the imported inputs, increase in transportation cost due to increase in prices of petroleum products/diesel, a significant increase in ocean freight from South Africa/Indonesia, etc, increase in the cost of electricity in terms of fuel price adjustments, and increase in tax rates.

The Ministry further stated that the Competition Commission of Pakistan (CCP) was looking into the price of cement and it would be appropriate to listen to CCP’s point of view also.

To another question, the Ministry said the prices of vegetable ghee had increased by 60 percent in the last three years, while the cooking oil prices had increased by 42 percent. It was explained that 95 percent of raw material, i.e., RBD Palm Oil and Palm Olien, etc, was imported and the prices of these inputs increased drastically due to COVID-19.