By Alicia Chamely

CONSUMERS can expect to see an increase in the price of cement if the National Gas Company (NGC) raises the cost of natural gas, says Trinidad Cement Limited (TCL).

In a press release on Tuesday, TCL stated recent increases in manufacturing costs had impacted their production costs and with the proposed increase of natural gas prices they would have no choice but to adjust its cement pricing.

TCL noted natural gas was critical in cement manufacturing and did not support the gas price increase, which was to be determined by NGC on January 31.

Stating it continued to engage with relevant stakeholders pushing for a “more balanced outcomes,” TCL warned, “Based on the official information communicated to date, the expected increase represents a material and unavoidable cost impact that requires a corresponding revision to our pricing.”

The release stated, “If the proposed gas increase is confirmed, TCL will be required to adjust its cement price increase shortly after to account for this significant effect to ensure continuity and sustainability of business.”

TCL stated it remained a major contributor to the national economy and earner of foreign exchange through its exports, therefore maintaining operational viability was essential, especially in order to preserve jobs.

It stated, “We will work closely with you, our customer, to clearly communicate to end users the reasons for this adjustment and the broader market conditions affecting pricing.”

In early January, NGC Chairman Gerald Ramdeen announced the company was looking into raising natural gas prices from US$3 to US$5.30 per MMBtu, a 76% increase.

The announcement was met with concern from local manufacturers and the Trinidad and Tobago Manufacturers Association (TTMA), who stated they were already dealing with increased electricity and shipping costs.

Ramdeen, however, had defended the move and stated he needed to do what was best for T & T.

 In a letter to the TTMA he wrote, “You should be aware that over the past ten years your members benefited from a highly subsidised cost of gas; below NGC’s acquisition costs. That is not a policy that the present Board of NGC can continue. The evidence does not suggest that this subsidy was passed on to the customers of your members. One can conclude that it was reflected entirely in their profit lines.”

The proposal to raise gas prices and by how much was set to be determined by January 31.