The latest GH¢12 increase in cement prices is beginning to affect demand, with some retailers reporting a decline in sales as customers reduce the quantities they purchase.

The increase follows the introduction of a GH¢12-per-bag surcharge by the Chamber of Cement Manufacturers Ghana, to help manufacturers recover clinker demurrage costs incurred due to congestion at the Tema Port.

Retailers say the price adjustment is making it difficult for some customers to maintain their usual purchasing levels, with some reducing their orders or postponing purchases altogether.

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According to the retailers, customers who previously bought larger quantities are now cutting back as the higher prices put additional pressure on their budgets.

Some retailers have also reported a decline in sales since the latest adjustment, noting that increases in cement prices often result in weaker demand.

The development has raised concerns among buyers and retailers, particularly as cement remains a major input in construction and other building activities.

Retailers have also questioned the continued rise in cement prices despite the recent decline in the value of the US dollar, with higher clinker-related costs cited as one of the factors contributing to the latest adjustment.

The increase could further raise construction costs for households, contractors and property developers, particularly those working with fixed budgets.

For individuals undertaking personal building projects, the higher cement prices could mean additional expenditure or delays as they adjust their budgets to accommodate the increase.

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Retailers, meanwhile, have called for government intervention, warning that sustained increases in cement prices could discourage purchases and put additional pressure on businesses across the construction supply chain.

They are urging stakeholders to explore measures to stabilise cement prices and prevent further increases that could worsen the cost of construction in the country.

DR/MA

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