Minister of Housing to address TCL price hike

May 04, 2013 News

In light of the recent hike in the price of TCL Guyana Inc (TGI)’s Portland-Pozzolan Cement, the Minister of Housing and Water, Irfaan Ali has promised that efforts will be made to address the situation.
On Tuesday, TGI issued a press release that informed sections of the media of a five per cent increase in the ex-factory price of its Portland-Pozzolan Cement that would have taken effect the following day. The company sought to water down the effects of the sudden hike, describing it as a “minimal adjustment” and blamed the cause for the increase on increased production costs and a price change by the parent company, Trinidad Cement Limited (TCL) which has been continuously faced with substantial increases in major cost components.

TGI’s Portland-Pozzolan Cement

The press release added that the new price being implemented is comparatively low when taking into consideration the price on the global market. TCL’s General Manager (Trinidad) Mr. Satnarine Bachew, in an invited comment, explained that the hike in the price is not confined to Guyana but also all across the region and with varying increases in different areas.
Bachew did not hesitate to mention that in some parts of Trinidad, the price for the commodity has increased by as much as 9.5 per cent.
No doubt, the recent increase in the price of this necessary commodity has been the worry of those who are part of the construction sector and more so, those who are involved in pertinent construction projects such as the building of the Marriott Hotel and the expanding of the East Bank Public Road.
What is noteworthy, however, is the fact that local distributors, with their customers in mind, have generously decided to hold the price for the commodity. In addition, the producer of the locally made West Indian Cement has assured his customers that his prices will remain the same.
In an effort to mitigate the effects of the recent price hike, the Housing Minister has assured that measures will be taken to address the situation in order to ease the burden on those who are directly affected by the sudden increase.
The Minister said that he believes that fairness in the market is not only required where there are shortages but also in the pricing of commodities. “Increases in product cost and raw materials should be balanced with the competitiveness of the product,” he said.
He added that a full analysis of the situation is being awaited and upon being received, the Minister of Foreign Affairs will be able to determine what position should be taken or whether a market should be open to extra regional companies.