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Business & Commerce

Cement Prices Remain Stable Amid Weak Demand and Easing Fuel Costs

Last updated: June 20, 2026 10:11 pm
Yamna Shahid
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Cement Prices Remain Stable Amid Weak Demand and Easing Fuel Costs
Cement Prices Remain Stable Amid Weak Demand and Easing Fuel Costs
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KARACHI, June 20: Cement prices across Pakistan remained largely stable in June 2026, with a standard 50-kilogram bag selling between Rs1,500 and Rs1,610, despite ongoing challenges related to energy costs, taxation and economic uncertainty.

Market data showed that premium cement brands were available at prices ranging from Rs1,475 to Rs1,505 per bag, while medium-grade brands were selling between Rs1,410 and Rs1,435. Lower-priced brands remained available in the Rs1,380 to Rs1,405 range.

White cement continued to command significantly higher prices, with a 40kg bag retailing between Rs2,250 and Rs2,350.

Industry experts said fuel and transportation costs remain among the most important factors influencing cement prices. Diesel, which is widely used for transporting cement and construction materials, witnessed sharp price fluctuations earlier this year amid regional tensions involving Iran.

The increase in diesel prices pushed transportation costs higher, forcing manufacturers to pass on additional expenses to consumers. However, recent stability in fuel prices has helped prevent further increases in cement rates.

Energy costs continue to pose another major challenge for cement manufacturers. The sector relies heavily on imported coal, which accounts for a significant portion of production expenses. Any increase in international coal prices or import-related taxes directly affects manufacturing costs.

Currency fluctuations have also added pressure to the industry. A weaker Pakistani rupee increases the cost of importing coal, machinery parts and other industrial inputs, resulting in higher production expenses.

In addition, cement manufacturers continue to face multiple federal and provincial taxes, including sales tax and other levies, which contribute to higher retail prices. Industry representatives have repeatedly called on the government to reduce the tax burden to support the construction sector.

Despite rising production costs, weak market demand has limited manufacturers’ ability to increase prices. Cement dispatches have reportedly declined by more than 21 per cent over the past year, reflecting slower construction activity and cautious investment amid economic uncertainty.

Analysts believe cement prices are likely to remain relatively stable in the near term unless major changes occur in fuel costs, energy markets or government taxation policies.

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