MANILA, Philippines - The Department of Trade and Industry (DTI) is considering filing profiteering charges against cement manufacturers after a report from the Board of Investments (BOI) showed that price of cement prices in the Philippines is the second highest in Asia.
“The President said we should go after the cartel and protect the consumers,” Trade Undersecretary for Consumer Welfare Zenaida C. Maglaya told reporters in an interview.
According to her, they will obtain a copy of the BOI study and will make their decision if they will file charges against the cement firms.
“We don’t have to wait for any complaint. We can go after them moto propio,” Maglaya explained.
The average price of cement in the country as of January this year stood at $4.56, or about P212, per 40-kilogram bag. Local prices are higher than in Japan, where cement costs about $4.32 a bag; Malaysia, $3.90; Taiwan, $3.83; Thailand, $3.27; South Korea, $3; Vietnam, $2.76; and China, $2.44.
Only in Indonesia is cement more expensive, at $4.62 per bag.
Demand for cement went up 15.7 percent in the first quarter fueled by election spending and the increased demand as a result of the destruction brought by typhoons Pepeng and Ondoy.
Cement Manufacturers Association of the Philippines (CEMAP) President Ernesto Ordoñez revealed that the demand went up because of the election spending. Likewise, the growth was a spill over from 2009 last quarter when demand surged after the destruction of the twin typhoons.
In 2008, demand for cement grew by 1.6 percent while demand in 2009 grew 10 percent.
However, Ordoñez said that cement demand will go down for the rest of the year because election spending is over. Full year growth target for cement is five to six percent.