Cement Prices Set to Rise Across Punjab – New Rates Inside!

Construction costs in Punjab are poised for a significant increase following a landmark Lahore High Court (LHC) decision imposing a 6% royalty on cement manufacturers operating in the province. The ruling is expected to disrupt market dynamics, creating a pricing disparity between Punjab and Khyber Pakhtunkhwa (KP)-based producers.

Current Cement Prices (Per 50kg Bag)

Key Implications of the Ruling

• Punjab vs. KP Cost Divide: KP-based manufacturers pay a fixed royalty of Rs. 350 per ton, while Punjab’s 6% rate could amount to ~Rs. 1,000 per ton—nearly 3x higher.

• Price Hikes Expected: Analysts predict immediate upward adjustments as Punjab producers pass costs to consumers.

• Market Competition: KP brands may gain a pricing advantage, potentially reshaping regional demand.

Industry Reaction

The decision has sparked concerns among:

• Builders and contractors facing rising project costs
• Homebuyers already grappling with inflation
• Manufacturers navigating uneven royalty structures

Expert Insight:

“This ruling will exacerbate Punjab’s construction inflation while giving KP-based cement firms a competitive edge. The ripple effects could extend to housing affordability and infrastructure projects,” noted a market analyst.