The retail price of cement has been increased up to Rs. 1,180 per bag as inflation and fuel rate hikes force manufacturers to pump prices.
According to JS Global, cement players in the northern region have decided to increase prices by Rs. 25-30 per bag to pass on the impact of inflation and fuel price hike.
Prices in the North will now range between Rs. 1,120-1,180 per bag post increase, depending on the area. Meanwhile, prices in the upper north will be closer to the lower range.
This comes as local cement sales in July recorded an increase of 47 percent compared to last year. However, despatches in July 2023 were almost 20 percent less than in June 2023.
Concerns over the rising cost of production due to inflation and increase in prices of petroleum products are weighing heavily on the manufacturing sector. The rate of electricity has also been increased by almost Rs. 7.5 per unit and the recent increase in fuel cost by around Rs. 20 per liter has impacted the freight cost.
Nevertheless, the current market environment may improve and rates could fall as large-scale contracts for projects in 2023-24 are expected to bring input costs down.
