By: Aseel Bin Taleb                                                                                                      

Riyadh - Mubasher: The chairman of national committee for cement companies, and general manager of Yamama Cement, said that approving the mechanism of calculating energy price differences is currently impossible due to high charges.

Jehad Alrasheed also told Mubasher that cement producers intend to approach the ministry and the legislative institutions to reconsider the decision.

When asked about subsidizing the cement industry, Alrasheed said that the local oil prices doesn’t represent a special subsidy to the cement sector, it is the kingdom’s policy to control the prices of local fuel, wondering why there are no special tolls on the ptrochem, cables, and other industries.

Alrasheed also warned that the decision could harm the cement industry and limit the available economic opportunities, adding that the decision does not comply with the Saudi Vision 2030.

The national committee for cement companies chairman added that inventories will reach 30 million tonnes, which will put more pressure on prices for an industry that is not entirely freed, as importing coal is not allowed which impacts costs and profits.

He also explained that cement is not currently sold at the official prices, as prices have fell due to the increase in supplies and the decline in demand.