KARACHI: Cement manufacturers are likely to increase price of the commodity by Rs30 to Rs40 per 50kg bag to adjust the impact of the power tariff hike, analysts said on Friday.
A cement manufacturer said that those cement manufacturers who completely depend upon commercial electricity for operating their units will have to increase cement price by Rs30 to Rs40 per 50kg bag to adjust the power tariff hike.
However, those cement manufactures who are allowed gas connections and are using captive gas-fuelled power plants have an advantage of Rs45 per bag in terms of lower cost of power than those using commercial electricity, he said.
The manufacturers demanded the government to provide a level-playing field, he said, adding that either all the manufacturers should be provided natural gas or the gas being provided to a few manufacturers should be diverted to the power producers.
“Also, to provide a level-playing field to the entire industry, the gas price should be increased by at least 150 percent to equalise the impact of the recent increase in the electricity tariff for the industry,” he said.
The decision to increase price of commercial electricity may also result in a loss to cement exports. Of total eight million tons of cement export by manufactures every year, five million tons is exported by those who completely depend on commercial electricity,” he said.
Saturday, August 24, 2013
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