The cost of cement is expected to rise significantly in Ghana; starting Thursday, February 27th, retailers plan to raise prices by about GHC 9 per bag. The new charges have already been applied by a few retailers.
Cement retailer Samuel Azu acknowledged the upcoming price change, saying, “We haven’t raised the price yet, but this will go into effect on Thursday.” Any consumer buying a bag of cement after that will have to pay GHC 120.00.
“This price hike is essential because, without it, we won’t be able to restock. If you don’t have that amount, you won’t be able to buy cement in Tema or anywhere else in the country. The factories have explained that the government has raised port tariffs,” Azu explained.
Azu went into further detail on the reliance on imported resources, saying, “Any increase in costs from the source directly impacts the final price, as the majority of materials used in cement production are imported.”
Bismark Owusu Tetteh, another retailer, highlighted the need for more stringent regulatory enforcement and voiced irritation over the frequent pricing swings.
The government has been encouraged to step in and calm the situation before it becomes worse by the Ghana Chamber of Construction Industry (GhCCI).
Emmanuel Cherry, the CEO of the Chamber, emphasized the importance of the government in resolving the problem.
“The best person to assist us is the government, as they are the ones with the power. The mandate lies with them. We can only talk or advise, but it is their decision to act or not.”
Last year, the Cement Manufacturers Association of Ghana and former Minister of Trade and Industry K.T. Hammond were at disagreement over a Legislative Instrument (LI) intended to regulate cement prices.
Supply chain participants had differing opinions about the former minister’s effort. As the year goes on, price increases persist, with some retailers attributing this to increased port taxes.
Source: Citinewsroom