Cement Prices Jump As Inflation, Axle Load Regime Force Manufacturers to Increase Rates

The retail price of cement has been increased up to Rs. 75 per bag as inflation and axle load control regime force manufacturers to pump prices.

According to JS Global, cement players in the northern region have increased prices by Rs. 75 per bag to pass on the impact of inflation and axle load.

Prices now range between Rs. 1,220-1,280 per bag post increase, depending on the area.

This comes as local cement sales declined by 5.78 percent during the month of October 2023. Total Cement dispatches during October 2023 were 4.007 million tons against 4.253 million tons dispatched during the same month of the last fiscal year.

Concerns over the rising costs due to the latest 100 percent axle load control regime (ALCR) on motorways and highways are weighing heavily on the manufacturing sector.

According to the All Pakistan Cement Manufacturer Association (APCMA), the implementation of the new axle load regime significantly reduces the lifting capacity of each truck (40 percent on 22-wheelers and 100 percent on 10-wheelers). This will undoubtedly contribute to a 50 percent to 60 percent increase in freight costs, ultimately around $2 billion on fuel alone.

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