Iraq's cement association calls for reversal of fuel subsidy decision

Iraq's association of cement manufacturers has called on authorities to reverse a decision which has seen a reduction in fuel subsidies for the sector, according to Agence France-Presse.

Earlier this month, the oil ministry raised the price of fuel sold to cement manufacturers from IQD150/l (US$0.10) to IQD250, in addition to a previous increase this year. The association has warned that the move risks factory closures or a hike in cement prices by at least US$10/t.

"The decision will lead to an additional cost of EUR35m (US$41m) per year, which could lead to heavy losses for the business," said Adham al-Sharkawy, head of Lafarge Iraq.

The fuel subsidies were originally approved in return for a commitment by producers to cap the price of cement.