- August 9, 2022
- Posted by: Amos Ekow Coffie
- Category: Economics
Cement prices are expected to be increased from next week.
Joy Business is learning that the wholesale price of a 50 kilogramme bag is expected to hit ¢68.00, from the current price of ¢59.00.
Why the increase?
According to some of the leading manufacturers in the country, the action has been influenced by a sudden rise in the cost of operations, from July 2022, due to the sharp depreciation of the cedi over the past month.
Officials at one of the manufacturing firms told Joy Business on condition of annonymity that, “when the factory price (whole sale price) of a 50 kilogramme was about ¢59.00, that was based on an exchange rate of around ¢7.60 pesewas in June this year”.
Rising cost of operations
However, based on the fact that most of them had to import some of the raw materials at a dollar rate of more than ¢9.00, “someone has to take care of this sudden increase in cost”.
Some of the manufacturers have also told Joy Business that t it has been very difficult to absorb all the rising cost of operations, and there is the need to share some of the burden with consumers.
This might be the second time in less than three months that the price of the product has gone up due to what the manufacturers say is the rising cost of production.
Impact on housing industry
The development may impact prices of houses in the short term and the personal budget of many individuals who are currently putting up houses in the country. It could also impact on the cost of on-going construction projects.
Reducing Cement prices
Manufactures had in recent times pushed for government to take a second look at the taxes on the inputs and charges at Ghana’s ports.
They had hope government will take an action to help reduce the price of cement.
It is the hope that these manufacturers will see review of taxes/levies at the ports that could help slowedown the hikes in the price of cement recorded in recent times.