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CUTS questions Ghana cement makers’ uniform GH¢12 surcharge

From Daily Graphic · () English

Translated from English and summarized by DistantNews. Read the original for the full story.

At a glance

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  • CUTS International said a uniform GH¢12-per-bag surcharge agreed by competing cement manufacturers could amount to price coordination.
  • Manufacturers cited vessel delays at Tema Port and estimated industry-wide demurrage costs of US$45 million to US$50 million in the first eight months of 2026.
  • CUTS said firms should independently decide whether to pass costs to consumers and how much to charge.

CUTS International, Accra, has questioned the competition implications of Ghana’s cement manufacturers agreeing on a uniform GH¢12-per-bag clinker demurrage surcharge.

The public policy think tank said it recognized the cost pressures facing manufacturers because of congestion at Tema Port. Vessel waiting times reportedly rose from an average of seven days in January 2026 to between 30 and more than 40 days in August. The industry estimated demurrage costs at US$45 million to US$50 million for the first eight months of the year.

CUTS said companies had the right to recover legitimate costs and maintain financially sustainable operations. Its concern, however, was that competing firms had collectively determined the amount consumers should pay. “Legitimate cost recovery should not become a basis for price coordination,” said Appiah Kusi Adomako, director of CUTS International’s West Africa Regional Centre.

Legitimate cost recovery should not become a basis for price coordination

· Appiah Kusi AdomakoThe CUTS International regional director explained the group’s competition concern about the uniform surcharge.

The Chamber of Cement Manufacturers, Ghana, said the surcharge consisted of GH¢10 before tax and GH¢2 in taxes and levies. It was agreed at an emergency meeting on Aug. 28 and is due to remain until Dec. 31, subject to monthly monitoring and a review in January 2027.

CUTS said calling the measure a demurrage surcharge rather than a price increase did not remove the competition concern. Manufacturers have different shipping contracts, clinker volumes, vessel arrangements, inventories, operating efficiencies and exposure to demurrage. One company might need GH¢12 to recover its costs, another GH¢8, while a more efficient producer might absorb part of the increase to retain customers or gain market share.

The question we should ask is why manufacturers with different cost structures and different exposure to demurrage should all arrive at exactly GH¢12

· Appiah Kusi AdomakoHe questioned why competing firms with different costs had agreed on the same amount.
About this summary

Originally published by Daily Graphic in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.