TCL warns: Price hike coming

Bags of cement at Trinidad Cement Ltd, Southern Main Road, Claxton Bay.

TRINIDAD Cement Ltd (TCL) has given customers a heads-up about a potential price increase once the proposed increase in natural gas prices is approved.

In a media statement on January 26, TCL general manager Gonzalo Rueda Castillo said natural gas is a critical input in cement manufacturing. He added that the company is awaiting the final determination of the National Gas Company's proposed gas hike expected on January 31.

"If the proposed gas price increase is confirmed, TCL will be required to adjust its cement price increase shortly after to account for this significant effect to ensure the continuity and sustainability of our business," the statement said.

"Maintaining operational viability is essential to sustaining these contributions and ensuring uninterrupted supply to the market."

The statement said over recent months, TCL experienced significant increases in manufacturing costs, including raw materials, packaging, and general inflationary pressures.

It added that these cost escalations have materially impacted the company's production costs.

"TCL does not support the gas price increase and continues to actively engage with relevant stakeholders in pursuit of a more balanced outcome," the statement said.

"However, 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."

Castillo thanks customers for what he called their "continued partnership," adding that TCL remains fully committed to delivering high-quality products and maintaining a reliable supply to support businesses and the wider construction sector.

TCL pledged to work closely with customers to "clearly communicate to end users the reasons for this adjustment and the broader market conditions affecting pricing."

It added, "TCL remains a major contributor to the national economy, providing stable employment, supporting local suppliers, and generating foreign exchange through exports."

"We appreciate your continued cooperation and confidence in TCL as we address these external cost challenges decisively and responsibly."

In response to the statement, former Energy Minister Stuart Young on January 27, criticised the Kamla Persad-Bissessar-led administration, accusing it of being incompetent.

A Facebook post said: "This is an example of the UNC's incompetence and the negative consequences of their continued imposition of hardship on TT's citizens."

"The price increases of natural gas (up to 70 per cent increases) to our manufacturing sector is going to lead to increases in the price of goods to us, the citizens and consumers. Expect price increase with food prices as well."

Young, who is also a former prime minister, continued that the government's "incompetence in the energy sector has far-reaching consequences that are already hurting TT".

Young concluded, "We are experiencing a loss of jobs and forex, businesses shutting down in record numbers and higher prices to consumers. Who is winning?"