The cost of construction is set to go up further following an increase of Rs10-20 made in the prices of cement by manufacturers in the southern region.
Retailers said that after the jump in prices, retail price of Falcon cement hovers between Rs520 and 520 per 50kgs followed by Rs505 per bag price of Lucky Cement. Other brands also sell in the range of 505-510 per 50kgs.
The cost of construction is under pressure from July 2013 onwards. Cement makers are pushing up rates from July 2013 onwards due to changes in taxes and duties after the budget.
In June 2013, a cement bag was available at Rs460, but after the change in the sales tax regime in the budget 2013-2014, the price increased to Rs490 from July and since then the prices are continuously rising.
Manufacturers in the North have not yet increased prices, but they may follow the suit.
Sources said cement makers have sought permission to fix retail price separately from southern region due to disparity in the transportation charges.
A cement maker said that manufacturers in the southern region are getting electricity from the national grid (KESC and Wapda). The power tariff has already been increased to Rs14 per unit from Rs9 per unit.
Association of Builders and Developers (Abad) Chairman Mohsin Sheikhani urged the government to investigate whether prices had been raised artificially or due to some genuine reasons.
