Trinidad and Tobago Faces Cement Price Hike Concerns
The recent surge in cement prices, announced by Trinidad Cement Ltd (TCL), has sparked concerns about its broader implications for the economy and construction sector.
The adverse effects of Trinidad Cement Ltd's (TCL) recent cement price hike have raised concerns about its broader implications for the economy and construction sector. TCL cement prices are set to increase on February 19.
The price increase equates to approximately $14 per bag since 2021.
The construction sector is of critical importance to the functioning of the economy, and this latest move will undoubtedly add to the strain on consumers who are in the midst of construction. Add to that the increases in electricity and property tax, and you have now significantly reduced discretionary spending. Compounding the issue is the fact that TCL operates as a monopoly, with competition stifled by import quotas that effectively pushed out other distributors.
The recent removal of quotas by the Trade Ministry may be a case of too little too late.
Today, the fluctuation in cement prices reverberates across various sectors, influencing inflation rates, construction activities, and overall economic performance.
Central Bank statistics from 2014 to 2023 reveal a stark correlation between cement sales and economic vitality.
