An agreement between the Ministry of Industry and Trade and the Jordan Cement Factories Company (JCFC) reduced cement prices by JD4.64/t Industry and Trade Minister Salem Khazaaleh told reporters during the weekly press briefing.
The company agreed to lower prices after the government cut fees and taxes on cement production.
The agreement brings to an end the so called "cement crisis" which started after the company’s decision to raise the price of cement by JD3.5/t two weeks ago.
The JCFC said the increase on cement price was due to the government decision to raise fuel oil prices.
"Importing cement from abroad is open for any dealer who wants to do so," Khazaaleh said.
In response to the JCFC’s decision to increase cement prices, the Civil Service Consumer Corporation decided earlier this month to invite dealers to take part in a tender to import cement.
The Ministry of Industry and Trade threatened in a statement last week to take legal measures against the company for its decision to raise the cement price.
Under Article 6 of the Anti-Trust Law, issued 2004, an enterprise with a dominant position in the local market or a significant part thereof, shall be prohibited from abusing this dominance in order to prevent, limit or weaken competition, the ministry’s statement said.
Under the law, a company must pay 5 per cent of its annual sales as a fine should it be found in violation and is proved abusing its dominant position.
A new cement company will start operations in Mafraq, 75km, northeast of Amman, Khazaaleh indicated. He expected the new company to supply the market with cement before 2008.