DMCI Holdings Inc. has started to increase cement prices in tranches in response to rising fuel and logistics costs, company officials said last week.
Executive Vice President and Chief Financial Officer Herbert Consunji told reporters DMCI had implemented a surcharge to offset the impact of higher diesel prices on cement production and distribution.
“For every P2.00 increase in fuel, there is roughly a P1.00 effect on cement prices,” he explained.
DMCI said the first price adjustment took effect on March 15, followed by a P10-per bag increase last week and another P10-per bag adjustment planned for April.
Consunji said the total increase could reach about P30-40 per bag, or roughly 15-20 percent of current prices.
The price hikes coincide with the peak construction season in the Philippines, when demand for cement is typically strong.
Consunji emphasized that price adjustments were necessary to cover costs and some slowdown in certain projects was possible.
“Somebody has to give in. There might be a slowdown [in construction],” he added.
DMCI shares on Friday slipped P0.08, or 0.82 percent, to close at P9.72 each.