Cement production costs in Saudi Arabia have increased due to high quarrying fees set by the Ministry of Industry and Mineral Resources and the increase in fuel prices, according to local media reports.
Diesel and fuel oil prices have increased by 40 percent, Tabuk Cement Co. CEO Ali Al-Qahtani told Al-Arabia TV, according to a report by Argaam financial news portal.
The sector’s combined production capacity exceeded 80 million tonnes, he said, adding demand currently stands at nearly 55 million tonnes.
Meanwhile, local Arabic language daily Okaz reported that 17 cement producers in the Kingdom sold 4.4 million tonnes of cement in June.
(Writing by D Madhura; Editing by Anoop Menon)