Lafarge files claim against state price freezing, Honduras

Lafarge files claim against state price freezing, Honduras
Published: 07 October 2004

Lafarge, owners of Honduran cement company Incehsa, has asked the government to annul an executive decree which fixed cement prices at 70 lempiras (US$3.90) a bag on August 23, according to local news reports.

A Honduran judge has given the country’s attorney general 20 days to respond to a compensation claim by Incehsa against the state for over 6mn lempiras (US$390,000) for losses incurred since price freezing was introduced, La Tribuna reported.

The company says the government is failing to take into account price increases in coal, electricity and transport, as well as the tax payable on every bag.

Lafarge estimates that it is currently losing 6.30 lempiras (US$0.35) on every bag of cement sold.

The government said the price freeze is a short-term decision and in the interests of the country. In the first two weeks of August, before the price was set at 70 lempiras, cement in Honduras rose by 12%, with some stores charging up to 90 lempiras (US$5.01) a bag.