Some leading cement companies in Pakistan have increased per bag price of their products by Rs 2.50 to Rs 7 in order to improve/maintain profit margins, a well-placed source told Daily Times on Friday. “Most of the southern region companies have raised the prices,” said the source. “It has been decided in the previous meeting of the cement cartel.”
There has been some dispute between the southern region companies and northern region companies regarding the price adjustments last month. Some of the southern region companies had already adjusted their prices in February, creating pressure on those companies who kept their prices unchanged on the request of their association. However, the cartel has permitted these companies to adjust their prices after a couple of months in order to prevent others from losses.
In prominent companies Falcon Cement increased Rs 2.50 on a bag from the previous Rs 257.50 to Rs 260 at retail level. Per bag price of Power Cement, a product of Essa Cement, has been increased by Rs 5 to Rs 242 from the previous level of Rs 237 per bag at the retail level. The only public sector cement company, Javedan Cement, also increased prices by Rs 7 per bag. A bag of Ordinary Portland Cement of Javedan Cement moved up to Rs 236 per bag from the previous of Rs 229 per bag. staff report.