CABINET has noted the unjustified price increases for cement, and the increase of fares in the public transportation sector, in deciding that interventions are necessary.
According to Head of the Presidential Secretariat (HPS), Dr. Roger Luncheon, “Shenanigans have surfaced again.” “Cabinet was notified of retail sector developments that have seen unusual price increases for cement. Prices have been increasing to about two times the normal retail price of about $1400 per sack; and $2600 per sack today is not unheard of,” Dr Luncheon told reporters at a post-Cabinet news conference.
He said fair trade and competition rules and regulations are being breached “as we speak, and they are being breached by major players in the retail sector”.
The Cabinet Secretary said TCL and its recent supply shortfalls have not helped the domestic users and consumers of cement.
“Cabinet was of the opinion that interventions were necessary; interventions that include invoking the provisions of the Fair Trade and Competition legislation; interventions of exposing those responsible, those contributing, those participating, those benefiting from these abnormal price movements; and, of course, as a final or a definitive solution, the resort to extra CARICOM importation of cement,” he stated.

Dr. Luncheon reiterated that “these unjustified price increases have happened before, and they are now recurring”.
He said Cabinet has noted that similar unjustified price increases are also being seen in the public transportation sector, where minibus operators have started to selectively increase fares in areas such as Sophia, South Georgetown, and on the West Coast of Demerara.
At a press conference earlier this week, Acting Minister of Tourism, Industry and Commerce, Irfaan Ali, said the issues surrounding the price, demand and supply of cement in Guyana have much to do with the “unscrupulous behaviour” of some distributors who are said to be stockpiling the commodity for their own dishonest gains.
The price for cement has been climbing recently, and Ali said distributors are charging between $1,800 and $2,300 per sack.  Some of them, he noted, are exploiting the situation in view of the ‘construction boom’ that Guyana is currently experiencing.
In fact, since last January, there has been tremendous expansion in the construction sector, and hence one of the primary commodities fetching higher prices is cement.
Following the spate of complaints to his office on the cement issue, a meeting was held with representatives of suppliers and distributors of cement. Present at that meeting were representatives of suppliers and distributors of cement, who concurred that the price for the commodity must come down. They agreed to the regular price for a sack of the commodity being $1,395 plus VAT, provided that supplies are adequate.
Authorities will be monitoring the prices; and if the condition persists, they will have to intervene to ensure stability on the market, Ali had said.
Meanwhile, no agreement has been reached between the Ministry of Tourism, Industry and Commerce and the United Minibus Association over the proposal by the latter to have minibus fares increased.
Acting Tourism Minister Irfaan Ali met with representatives of the union Thursday afternoon, but nothing could be decided as government is not inclined to agree to a fare increase, while the union is insisting there should be such.
Last Wednesday, at a press conference, Minister Ali urged the public not to pay increases because those have not been sanctioned or discussed with the government.