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Energy price hike to cost Saudi Cement $18m

RIYADH, December 30, 2015

Saudi Cement Company expects the fuel and electricity price hikes announced in the 2016 government budget to increase its production costs by SR68 million ($18.1 million) next year, it said in a bourse statement on Wednesday.

The firm said production costs for 2016 had been calculated based on current production levels.

The government on Monday said it was raising prices for fuels, water and electricity as well as gas feedstock used by industry, as part of subsidy reforms designed to help state finances cope with low oil prices.

The price of methane was raised to $1.25 per million British thermal units and ethane to $1.75; previously, both were at 75 US cents, among the lowest in the world.

It has set the price of 95 octane gasoline at 0.90 riyals ($0.24) per litre, SPA said, up from the current price of 0.60 riyals per litre. - Reuters




Tags: cement | Saudi Arabia | Energy |

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