The Gambia Government has reportedly asked Jah Oil to maintain the old cement price barely 72 hours after the company effected an upward revision in the cement price.
Jah Oil released a statement this week, announcing its move to increase the price of a bag of cement from D355 to D390.
According to the company, the decision to revise the cement price upward was due to “increases in global market prices for cement and clinker, compounded by the depreciation of the Dalasi against the US Dollar”.
However, the Gambian authorities have reportedly asked the company to rescind its decision, citing a violation of “the agreement” the government reached with the company to ensure the affordability and availability cement. The government earlier last year raised the levy on a bag of cement from D30 to D180 to “protect” Jah Oil, Salam and Gacem cement companies.
When the new tariff was introduced, Jah Oil made an undertaking that it has the capacity to meet the country’s cement demand.
However, the ensuing cement shortages and price hikes laid bare the company’s inability to plug the gap between demand and supply.
