Cement producers have called on the Ministry of Industries, Mining and Trade to increase cement prices by 17%, arguing that the move would not lead to a surge in construction costs.
Secretary of the Cement Industry Employers Association, Abdolreza Sheikhan announced the news, adding that the association has prepared a comprehensive document to persuade the ministry to hike cement prices.
“The high production costs combined with the recent increase in electricity and fuel prices have left cement manufacturers with no options but to increase selling prices,” Eghtesad News quoted him as saying.
Sheikhan added that many manufacturers will be forced to lay off workers if the government does not agree to the price hike in view of the increase in transportation costs.
“Increasing cement prices by 17% would not affect the housing costs significantly, as cement accounts for only a small part of total construction costs,” he said.
The domestic cement industry has been hard hit in recent years due to an unprecedented downswing in construction activities and the hike in energy prices.
The government recently lowered subsidies on fuel to sell gasoline and diesel at unified prices of 10,000 rials (30 cents) and 3,000 rials (9 cents) per liter respectively.
In disagreement with Sheikhan, Minister of Industries, Mining and Trade Mohamamd Reza Nematzadeh said earlier this month that the cost of energy supplied to industries such as steel and cement would remain unchanged.
