Cement prices hit GH₵66 per bag

The price of a cement bag is expected to increase by more than ¢5 from today to ¢66, manufacturers of the product have told Joy Business.

According to industry sources, Accra consumers will be the most affected as some manufacturers want to offset transportation costs to other regions.

One of the manufacturers told Joy Business, “we can control the factory price, but we are not sure about the retail price on the markets in other regions.”

However, “we will try our best to take some of the cost of reducing the margin of increase after the transport charges and other related costs are added to the product”.

Reasons

The manufacturers say the increment can be attributed to many issues, most of which they have tried to manage for a long time.

They cite some issues, including the depreciation of the Ghana cedi, hikes in prices of petroleum products, and transport fares as some factors influencing the increase.

They also maintained that their situation has been compounded by supply challenges on their production inputs and difficulties importing some raw materials due to developments in Russia and Ukraine.

The manufacturers have also raised issues with some port charges, which they say leave them with no choice but to pass the cost to consumers.

Impact on the economy

The development may impact the prices of houses in the short term and the personal budget of many individuals currently putting up houses.

It could also impact the cost of some of the ongoing construction projects in the county.

The adjustments may also increase the cost of doing business and influence the rising inflation rate in the country.

Source: myjoyonline.com