Prices of cement have increased by GH¢12 per bag across major brands, following the introduction of a corresponding surcharge by the Chamber of Cement Manufacturers, Ghana.

The Chamber says the surcharge is intended to help cement manufacturers recover clinker demurrage costs incurred amid severe congestion at the Tema Port.

But for retailers, the price adjustment is already affecting purchasing decisions, particularly among customers operating on tight budgets.

Retailers report weaker demand

Cement retailer Vida Okyere says the scale of the latest increase is making it difficult for some customers to maintain their usual order quantities.

She explained that customers who had budgeted for a specific number of bags are now being forced to either reduce their purchases or postpone them altogether.

“Prices of cement increased last week by GH¢12 and it’s very bad. Customers are complaining because at first, when the cement was increased, it wasn’t up to GH¢12. It was maybe GH¢3 or GH¢4.

“For instance, if the customers have a budget to buy 10 bags of cement, due to the increment, they will be compelled to lower their target or not make the purchase at all,” she said.

Another retailer, Eric Boamah, says the higher prices have already translated into a noticeable decline in sales.

He questioned why prices remain elevated despite the recent decline in the value of the US dollar, which would ordinarily be expected to ease some import-related cost pressures.

“It has been increased but I know the dollar is down but I don’t know why. Maybe it’s the price of the clinker or maybe something like that, I don’t know. But when you go to the factory they will tell you that the price has been increased, so that is what is going on now,” he said.

According to Mr. Boamah, the impact on demand has been immediate.

“Now sales have dropped. Normally, you know, when the price of cement goes up, sales drop drastically,” he added.

Calls for government intervention

The latest price increase has also triggered calls for government intervention, with retailers warning that sustained increases could hurt both consumers and  businesses across the construction supply chain.

Retailer Kwaku Antwi believes the higher prices could discourage purchases and ultimately affect businesses that depend on steady demand.

“Nation-building is a shared responsibility. However, I believe the government should intervene in the recent increase in cement prices.

“If prices had remained stable, it would have encouraged more purchases. The increase could drive customers away, leading to lower sales and ultimately affecting our businesses,” he said.

What the increase means

The GH¢12 surcharge may appear to be a cost affecting cement manufacturers and retailers, but its impact could extend further across the construction sector.

For those building homes, contractors and developers, higher cement prices mean construction budgets may have to be revised, particularly for projects already underway.

At the retail level, weaker demand could also squeeze margins for businesses if customers respond to the higher prices by buying fewer bags or postponing construction.

The development also highlights the wider economic cost of congestion at the Tema Port.

While the surcharge is intended to recover demurrage expenses incurred by manufacturers, those costs are ultimately being passed through the supply chain.