Thursday, December 28, 2006

Price Of Cement Increased Without Our Knowledge On Dec 1st

Many people may not realise that the price of cement has gone up by 75 sen to RM1.75 in the peninsula and between RM2.95 and RM5.70 in Sabah and Sarawak since Dec 1.

Deputy Domestic Trade and Consumer Affairs Minister Datuk S. Veerasingam said the increase was approved by the ministry according to the Price Control Act adding that the new price varies depending on the zone the states were in.

For Perlis, Kedah, Penang and Perak, the retail ceiling price for a bag of 50kg cement, which normally cost RM9.90 in the peninsula, is RM10.85 while in Pahang, Selangor, Melaka, Negeri Sembilan, Kuala Lumpur and Putrajaya it is RM10.95 a bag.

In Terengganu and Kelantan, it is RM11.65 per bag and RM11.20 in Johor.

In Sabah, the price varies according to zones which is between RM15.45 and RM16.25 per bag from RM12.50 previously while the new price in Sarawak is between RM13.75 and RM17.60 from RM11.90 previously.

***** Is this the beginning of price increases on the sly by the government? If this trend is not opposed or checked God knows where it will end. The minister owes an explanation why we were not informed of this huge hike in cement price.
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Blogger walski69 said...

The likely causes are fuel (accounting for the increase in the first place) and transportation (accounting for the difference in quantums).

Why fuel? Those unfamiliar with the cement process may not know that a Cement Kiln - essentially a huge horizontal, slightly-inclined, rotating oven - uses a lot of fuel. This is where ground limestone is flowed thru, and around midway (around 1800 degF), the ground limestone begins to melt, forming a lava-like slurry, which dries up in small cakes at the hot end of the kiln (where the burner is, usually in excess of 3000 degF). The resulting product is called cement clinkers which is then ground up to form the cement powder (some processes also add gypsum).

Hence, this is yet another hidden cost-hike as a result of more expensive fuel, which in turn is going to effect the construction industry. And as we all know, the construction industry has a big effect on the overall economy.

But what truly amazes me is how the-moron-general-of-Johor, in light of this new negative economic impact, can keep on harping on and on about the unacceptability of a Bangsa Malaysia, which may have a contributing effect of scaring away potential FDI to our more liberal (and probably more sensible) neighbors...

Walski: shakes head in dismay, disgust, and disillusionment...

5:57 PM GMT+8  

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