KARACHI, July 19: The cement manufacturers have said that the increased cost of production has resulted in recent price hike of around 64.5 per cent or Rs147 per bag against the cement price quoted about a year ago.

In a presentation made to the ministry of industry the cement industry explained that the cost of production tremendously increased due to high rate of taxes, freight and other charges over the last one year.

According to the data provided to the ministry the cost of production, taxes, freight and commission charges have shot up by Rs106.64 per bag in one year.

The data further revealed that the cost of raw material and packing per bag increased to Rs27.79 from Rs18.27 a year ago. Similarly, the cost of fuel and power has increased from Rs65.70 to Rs152.28 per bag.

The industry has pointed out that during one year fuel and power costs, which are main components of production in cement sector, has increased manifold.

The price of coal jumped from $75 per ton to $202. The cost of diesel increased from Rs35.82 to Rs55.31 per litre. In its presentation the industry further pointed out that cost of furnace oil increased from Rs26,678 to Rs50,740 per ton. Similarly, the cost of power has increased from Rs3.99 to Rs5.18 per kwh.

On packing material the cost of paper bag has jumped up by 58 per cent. The mark-up rate has gone up to 16 per cent from 10 per cent a year ago.

The ministry sources acknowledged that both coal and electricity prices have gone up and any further rise will multiply the losses of cement industry.