Northern Cement says production costs likely to rise 14% on fuel price hike

Logo of Northern Region Cement Co. 

Northern Region Cement Co. said that the direct financial impact from adjusting fuel prices is expected to lead to around a 14% increase in production cost, according to a statement to Tadawul. 

The company also confirmed that it will work over the coming period to explore ways to reduce the impact of this adjustment on the financial results. 

Earlier this month, the cement producer received a notification from Saudi Aramco on adjustments to prices of fuel products used in cement production, effective Jan. 1, according to data with Argaam.  

The related financial impact is anticipated to appear in the first quarter of 2024.