The price of a 50 kilogramme bag of Cement is expected to be increased by more than ¢5 from today to hit ¢66.

This is what Joy Business has picked up from some of the major manufacturers of the product in the country.Sources say the expected increase may hit consumers in Accra the most.This is because some manufacturers are looking to offset parts of the cost of products being transported outside the metropolis to other regions in the country.

One of the manufacturers told Joy Business; “we can control the factory price, but we are not sure about the  retail price on the markets in other regions.”

However, “we will try our best to take some of the cost of reducing the margin of increase after the transport charges and other related costs are added to the product”.

Reasons

According to the manufacturers, the increment can be attributed to a myriad of issues, most of which they have tried to manage for a long time.

They argue that the increment has been influenced by the recent depreciation of the Ghana cedi, hikes in prices of petroleum products, and transport fares.

They also maintained that their situation has been compounded by supply challenges on their production inputs and difficulties with importing some raw materials, due to developments in Russia and Ukraine.

The manufacturers have also raised issues with some of the port charges, which they say leave them with no choice but to pass the cost to consumers.

Impact on the economy

The development may impact the prices of houses in the short term and the personal budget of many individuals who are currently putting up houses in the country.

It could also impact on the cost of some of the ongoing construction projects in the county.

The adjustments may also increase the cost of doing business and influence the rising inflation rate in the country. Source: JoyBusiness