Manufacturers of the cement have told Joy Business that the price of the product would rise by more than $5 from today to $66.
Consumers in Accra would be the most affected, according to industry insiders, because some manufacturers wish to offset transportation expenses 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”, he added.
Motivation
The producers claim that the increase is due to a variety of factors, the majority of which they have been attempting to address for some time.
They cite a number of causes affecting the increase, including the devaluation of the Ghana cedi, price increases for fuel items, and transportation fees.
They also stated that their predicament has been exacerbated by supply issues with their manufacturing inputs as well as difficulty importing various raw materials as a result of events in Russia and Ukraine.
Manufacturers have also complained about some port fees, claiming that they have little choice but to pass the costs on to consumers.
Impact on the Economy
In the short term, the development may have an influence on housing prices and the personal budgets of many people who are now building homes.
It might also have an influence on the cost of some of the country’s ongoing building projects.
The changes may also raise the cost of conducting business and have an impact on the country’s increasing inflation rate.
Source: myjoyonline.com