The Commerce Commission yesterday gave the green light to Fiji Industries Limited (FIL) to increase its charges of bag and bulk cement by 15 per cent.
FIL is the monopoly holder on local cement production and the commission is the regulatory authority responsible for price determination of cement products.
A statement by the commission said the hike is based on increases in the landed cost of raw materials needed for cement production – clinker, slag and gypsum.
General Purpose Blended (GB) bag cement will increase from US$203.94 (Vat Exclusive Price (VEP) to US$234.53/t, while General Purpose Portland (GP) bulk cement goes up from US$185.40 to US$213.2/t VEP.
“The new prices are authorised for orders or requests placed with or received by FIL on and from tomorrow,” the commission said.
The competition and monopoly regulator added that the new prices did not apply to orders or requests for supply currently held but not yet accepted or filled by FIL.
“Such orders must be filled at the old prices,” it said.
The prices are subject to conditions such as the revocation of the increase in the event of a five per cent drop in FIL’s clinker costs or in world average clinker costs.
The price increase would be also changed should FIL’s fuel costs decrease by five per cent.
The commission said the new prices may be revoked or varied in the event of any changes in government tariff or economic policy.