Trinidad Cement Ltd (TCL) has increased the price of cement by US$1 per metric tonne beginning July 1, while local distributors have done so by almost 14%, from $860 to $980.
TCL Group of Companies said in a public notice this increase comes after a price increase in 2002, despite rising operating costs.
"It is acknowledged that the distributors are faced with increases in other costs such as handling charges and stevedoring activities; however, such increases are outside the control of the TCL Group of Companies," the notice said.
The US$1 increase is equivalent to an additional $7.16 per bag, the notice stated.
One distributor told Stabroek Business that although TCL's increase was only by US$1, distributors' price hikes were justified because of the increase cost from fuel and freight charges.
Freight charges, the distributor said, went up by some 35% since shipping companies are charging more. The new International Ship and Port Security (ISPS) Code has also contributed to increased shipping charges.
"We are struggling to keep our prices [low]," the wholesaler said, adding that the next move will be to lay off workers if the situation does not improve. Guyana still sells cement cheaper than the rest of the Caribbean.
Even though TCL is trying to supply the Guyana market, this wholesaler is struggling to get half of the cement it needs to fill demand.
The TCL bagging terminal expected to come on stream in November will not ease the supply issue, if the product is not there to be bagged, the wholesaler noted.
A reliable source told Stabroek Business that with the coming of the bagging plant cement prices will increase further since TCL will have to recover its building costs.
A waiver on the Common External Tariff instituted in March for local distributors to import extra-regional cement, is still to be taken advantage of. Another distributor explained that as a result of the small mark-up it will not be profitable for them to import cement from extra-regional sources.