Lafarge Cement has raised prices of cement by PHP8 per bag to PHP211/40kg bag of cement from PHP203 on account of high cost of power and coal, which could trigger a start of a series of price increases of cement especially for firms with plants in Mindanao.
Trade and Industry Undersecretary for consumer welfare Zenaida C Maglaya told reporters that Lafarge has justified its price adjustment for its Republic cement brand in a letter submitted to her last May 15.
Lafarge informed DTI that prices coal has increased by 22 percent while power cost has gone up by an average of 8.5 percent.
But Lafarge, which has two cement plants in Iligan – Iligan Cement and Mindanao Portland Cement, was affected by the high power cost in Mindanao following the 8 to 12-hour rotating brownouts currently hitting the country’s second biggest island.
As a result, DTI said that power cost alone for its cement plants in Mindanao has gone up by 44 per cent.