Fiji is raising cement prices

A detailed analysis by Fiji's Commerce Commission following a cement price submission from Fiji Industries Ltd (FIL) has resulted in a price increase for the building product. The commission approved a 2.7 per cent increase in the wholesale price of bagged and bulk cement effective 1 November 2013.

This means consumers will pay US$6.14 more on the present price of US$227.63 for the general purpose blended (GB) bag of cement and US$5.58 extra on the price of US$206.95 of ordinary Portland bulk cement.

Commission chairman, Dr Mahendra Reddy, said the increase was necessary, because of factors highlighted by FIL.

"Those factors included an increase in the price of raw materials (clinker and slag) from previous years because of the strong US currency; increase in production labour rate by four per cent based on union log of claim and increase in capital expenditure to maintain the mill efficiency in the FY13.

"The unwanted funding cost due to bank overdraft as per the audited financials for this year for repair works during a machine breakdown was also part of the formal submission. Based on the submission and the commission's independent research and analysis, the commission has made this determination."

Dr Reddy said the Commerce (Control of Prices for Cement Products) Order 2012 authorised them to regulate and control prices.