City Cement says fuel price hike to raise costs by 8%

Production line in City Cement Co.

City Cement Co. expects the increase in fuel prices, announced earlier by Saudi Aramco, will raise total costs for the company by an estimated 8%.

In a statement to Tadawul, the cement producer said its investments in alternative fuel and waste heat recovery system had a positive impact by mitigating the financial impact. City Cement is working to reduce further the impact of the fuel prices hike, it added.

The impact will likely reflect in financial statements beginning Q1 2024, the company said.

In January, City Cement announced that it had received a notification from Saudi Aramco to amend the prices of fuel products used in cement production, starting from Jan. 1, 2024, Argaam earlier reported.