Uganda prices increase on fuel costs and weaker shillingCement prices in Uganda are heading up on the back of higher fuel prices and the weakening shilling.
The retail price of a 50kg bag of cement now costs between UGX29,500 and UGX30,000 (US$10.7)
at several hardware stores such as Hardware World in Ntinda.
While wholesale prices vary between UGX28,500 and UGX28,800.
Retail cement prices have risen by about UGX7000 per bag since the beginning of the year undermining the construction of residential and commercial property.
Mr David Njoroge the general manager of Hima Cement, the largest producer of cement in Uganda, attributed the surge to the persistent rise in fuel prices and the 21 per cent depreciation of the local unit against the dollar since January 2011.
“These put pressure on the cost of production, transportation and distribution of products which costs are then passed on to consumers where possible,” Mr Njoroge said in an interview on Tuesday.
Fuel prices have gone up by almost a half since the beginning of year. For instance the cost of diesel has gone up to KES3450 per litre from KES2200 in January.