Cement manufacturer Concreat Aggregates Corp. is implementing staggered price increases of approximately P30 per bag, citing rising fuel costs.
Concreat president and chief executive Herbert Consunji said the company initiated a P10-per-bag increase March 15, followed by another adjustment this week and a further hike scheduled for April 6.
The company is adopting a “pass-through” mechanism, in which higher fuel costs are reflected in cement prices. To ensure transparency, part of the increase has been unbundled and labeled as a fuel surcharge, which may be removed if fuel prices stabilize.
Consunji said fuel plays a significant role in cement pricing because it accounts for one-third of total production costs. He noted that for every P2 increase in fuel, cement prices typically rise by about P1. Fuel affects both logistics, such as trucking and delivery, and the heating of kilns for production, he explained.
Fuel prices in the world market have surged since the U.S. and Israel launched surprise airstrikes on multiple sites across Iran. Crude oil almost reached $120 a barrel early this month on worries that geopolitical tensions would cause severe disruptions to energy production.
The price increase is expected to slow demand and affect construction activity, especially during the peak summer months. However, Consunji noted that construction need not stop, though consumers may need to adjust project plans.
“You can still build, but maybe scale down,” Consunji said.
Concreat Aggregates, formerly Cemex Holdings Philippines Inc., has an annual production capacity of 7.2 million metric tons following the recent opening of its new production line at Solid Cement.
In 2026, the company recorded a net loss of P1.9 billion due to higher financing expenses and lower average selling prices. The company said it has implemented operational improvements to strengthen its position for recovery.
