THE PRICE of cement has, over the few past weeks, soared in the Ashanti Region, following a seeming scarcity of the commodity, ostensibly being created artificially, thus forcing some distribution outlets to close down temporarily though.
This situation seems to be the case across the country, according to The Chronicle information, which has compelled most of key distributors of the commodity in Kumasi to throng the Ghana Cement Company (Ghacem) premises in Accra.
Ghana Cement Company sources say it had not increased price (about GH¢10.35) of the commodity, and explained the current situation as being the consequences of power outages they experienced recently.
According Dr. Dawson-Amoah, Corporate Affairs Director of Ghacem, production would soon normalise with an improvement in supply of electricity.
According to him, the situation had arisen out of the huge backlog of supply, and hoped the company would resume its average production levels if electricity supply is guaranteed.
Ghana's cement supply is done by two main cement manufacturers, Ghacem and Diamond Cement, and other sources.
A bag of cement, which hitherto sold between GH¢12.50 and GH¢13.00, is now selling between GH¢15.00 and GH¢16.00, and it is feared that the price could go to about GH¢20.00 soon, if nothing is done about the situation.
Local distributors have collaborated Ghacem sources that prices had not been increased by the cement producers, but the situation is that they are procuring the commodity from middlemen at GH¢14.00 a bag before it gets to the region.
The distributors are grieving over why they are facing shortages at a time (June/July) when the commodity should rather be in abundance, and suspect it is artificially being created for an agenda.
One would have to buy the commodity from other distributors, who might have also procured it from fellow distributors, at an added cost, before it finally gets to the consumer.
It is likely that the price of cement in the northern parts of the country would further be hiked, following added cost in transporting the commodity to the area.
Nana Owusu Ansah, proprietor of Nana Owusu Ansah and Sons Company Limited and Chairman of the Local Cement distributors, who had just returned from Accra when The Chronicle called, says the situation had persisted over the past one month.
A representative of Kwasi Oppong Company Limited, a major cement distributor in Kumasi, was in Accra, apparently to sort out things with the manufacturers
A check at Eno Mma Company Limited, a local distributor, indicated that a bag of cement sells at GH¢13.50, even though there has been none in stock for sometime time now.
Sources at Nana Kwadwo Gyasi Company Limited, J. K.O. Ansah Enterprise and Kwadwo Abora Company Limited, all dealers in cement and building materials, were tipped over the situation.
Meanwhile, dealers in building materials also have to contend with increase in prices of iron rods.
A tonne of iron rod, which sold at GH¢1,000 in January this year, is now selling at GH¢1,472.00, according to the price list of the Tema Steel Company Limited, the biggest steel company in Ghana.
A local iron rod dealer told The Chronicle that he is compelled to distribute the item at about GH¢1,650.
The steel companies are citing the same reason – power fluctuations – for the hike.
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