The latest GH¢12 increase in cement prices across major brands is beginning to weigh on demand, with retailers reporting weaker sales and fewer customers visiting their outlets.
The price increase follows the introduction of a corresponding surcharge by the Chamber of Cement Manufacturers, Ghana, which says the measure is intended to help cement manufacturers recover clinker demurrage costs incurred amid severe congestion at the Tema Port.
However, the latest adjustment is already affecting purchasing decisions, particularly among customers operating on tight budgets.
Cement retailer Vida Okyere said the scale of the latest increase was making it difficult for some customers to maintain their usual order quantities.
According to her, customers who had budgeted for a specific number of bags were now being forced to either reduce their purchases or postpone them altogether.
“Prices of cement increased last week by GH¢12 and it’s very bad. Customers are complaining because at first, when the cement was increased, it wasn’t up to GH¢12. It was maybe GH¢3 or GH¢4.”
She explained that the increase could significantly affect customers with fixed budgets.
“For instance, if the customers have a budget to buy 10 bags of cement, due to the increment, they will be compelled to lower their target or not make the purchase at all,” she said.
Another retailer, Eric Boamah, said the higher prices had already translated into a noticeable decline in sales.
He also questioned why cement prices remained elevated despite the recent decline in the value of the US dollar, which he suggested would ordinarily be expected to ease some import-related cost pressures.
“It has been increased but I know the dollar is down but I don’t know why. Maybe it’s the price of the clinker or maybe something like that, I don’t know.”
Mr Boamah said retailers had little option but to pass on the increases communicated by manufacturers.
“But when you go to the factory they will tell you that the price has been increased, so that is what is going on now,” he said.
The latest price adjustment is raising concerns among retailers about the potential impact on construction activity, particularly for individuals and small-scale developers working with limited budgets.
Source: Wesleyannews.com
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