DMCI raises cement prices amid fuel spike
DMCI Holdings Inc. has begun raising cement prices in tranches as it moves to pass on rising fuel costs, with adjustments tied directly to volatility in energy prices.
“Cement prices have already increased. There was a planned increase before, which started on March 15,” DMCI executive vice president and CFO Herbert Consunji said.
He said the company’s cement unit, Concreat Holdings Philippines Inc., is now implementing a pass-through mechanism, wherein increases in fuel costs are reflected in cement prices through staggered adjustments.
“We are passing through the increases. Any increase in fuel, we add. So there will be tranches—March 15, then this week, and another on April 6,” he said.
Consunji added that the company opted to “unbundle” the pricing structure by indicating a separate fuel surcharge, allowing flexibility should fuel costs ease.
“To be fair, we unbundled it. There’s a note below [the billing] that this is a surcharge for fuel. If things improve, then we will remove it,” he said.
Based on current plans, the increases could total around P30 per bag, with about P10 adjustments implemented in phases.
The pricing model reflects the heavy impact of fuel on cement production and distribution, which Consunji described as energy-intensive.
“For every P2 increase in fuel, there is about a P1 increase in cement,” he said. “Fuel is consumed heavily in logistics—delivery and trucks—and in the actual production or ‘cooking’ of cement.”
The move comes as DMCI recalibrates operations amid global uncertainties, particularly rising fuel prices and supply constraints.
Earlier, the Consunji-led group said it was reviewing operating costs and timelines even as its P24.6-billion capital expenditure program for 2026 remains intact.
“It’s not just a matter of price, it’s a matter of availability. You may have money to buy it, but it’s not available,” Consunji said.
Within the group, some project timelines may be adjusted, while committed developments will proceed.
