Gas price hike to raise Bangladeshi cement prices

Gas price hike to raise Bangladeshi cement prices
27 February 2017

Following a hike in gas prices by Bangladesh Energy Regulatory Commission, a rise in the production cost and sales price of cement is expected in the country.

The gas price for captive power and industrial sector has been increased by 15 per cent and 15.13 per cent, respectively, to be imposed in two phases between March and June this year.

Local businessmen and experts were of view that it would impact the economy and argued that it is not the permanent solution to mitigate the gas crisis. The cement industry in Bangladesh is yet to comment on the increase in gas prices and its impact on cement industry in the country.
However, the leading economist at the World Bank’s Dhaka office, Dr Zahid Husssain, while commenting on the increase in gas prices, suggested that Bangladesh may import more urea instead of domestic production, to reduce the use of natural gas in fertiliser production and that saved gas volumes can be used by other industrial sectors, including the cement industry.

Published under Cement News