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Cement price

hike unjustified,

says MCA

ISLAMABAD: The Monopoly Control Authority has described increase in cement prices by the cement manufacturers as 'arbitrary and unjustified'.

Artificial shortage and cartel fostered by the cement manufacturers is contrary to the legal canons and harming the interests of the consumers, sources at Monopoly Control Authority told APP here Friday.

The manufacturers should enhance their production to the capacity level, sources said adding, healthy and fair competition will help determine the prices.

Cement prices recently upwardly revised, sources observed were on the pretext of surge in furnace oil prices which is not justified as raise in cement prices is more than proportionate increase in furnace oil prices.

"The Authority will continue to fight against illegal formation of cartel and illegal restriction on production capacity to safeguard the interests of the consumers," the sources added.

To a question, the sources explained that relief, by trimming excise duty of Rs 26 per bag was given by the previous government to the manufacturers, but no relief was transferred to the consumers.

In response to another question, the sources proposed levy of capacity tax on the cement manufacturers, which sources observed will help force them to enhance their production upto capacity level.

The price of cement has been reportedly raised by Rs 12 to Rs 17 per bag and cement is now being sold at Rs 230 to Rs 235 per bag.ÑAPP