Govt to Implement Cement Price Regulation for Fair Pricing—K.T. Hammond

The Minister for Trade and Industry, Kobina Tahir Hammond, has announced that a new Legislative Instrument (L.I.) regulating cement pricing will soon take effect.

This regulation aims to ensure fairness in cement pricing and protect both the industry and consumers across Ghana.

Mr. Hammond made this known during a press conference held on Wednesday, September 4, 2024.

At the conference, the Minister reminded the public of a pending L.I. that was expected to mature before Parliament’s last recess but did not. Now fully matured, the L.I. is set to introduce measures that will address two critical areas: cement quality and pricing.

Cement Quality and Public Awareness

The Minister emphasized the need for increased public awareness regarding the different types of cement available on the market and their specific uses. He expressed concern that many consumers are unaware of the significant differences between various grades of cement, such as 32.5R and 42.5R.

These two grades, according to Mr. Hammond, have distinct chemical compositions and purposes, and using the wrong grade for certain construction tasks could compromise the structural integrity of buildings.

“The nation should be aware of what they are buying and how it should be used,” he stated. “It’s not safe to use 32.5R cement, which is meant for plastering, for foundational work. We must ensure that consumers understand the importance of using the correct type of cement for specific purposes,” he said.

To address this issue, the Ghana Standards Authority has been directed to take steps to differentiate cement packaging, making it easier for consumers to identify the right type of cement for their needs.

Cement Pricing Transparency

Regarding cement pricing, Mr. Hammond expressed his dissatisfaction with what he described as unfair practices by some cement manufacturing companies.

He noted that despite ongoing discussions, one company had recently raised prices by GHS 8, a move he labelled as “blatant” and unfair to consumers.

The newly implemented L.I. establishes a committee tasked with ensuring transparency in how cement prices are determined.

This committee will require manufacturing companies to present detailed justifications for their pricing, considering factors such as raw material costs, foreign exchange rates, taxation, and electricity costs.

“We understand the complexities of production costs, but we want transparency. The committee will examine the basis of these prices and ensure that consumers are treated fairly,” the Minister explained.

He hinted that the outcome of these investigations might lead to a reduction in cement prices or at least stabilize them.

With the new law in effect, the Ministry of Trade and Industry is optimistic that cement prices will soon reflect greater fairness and transparency.

Mr. Hammond urged cement manufacturers to cooperate fully with the new regulations, assuring the public that the government is committed to ensuring that the cement industry operates in the best interests of consumers and the country as a whole.

Source:expressnewsghana.com