Reinforced concrete price hikes in Kuwait after diesel price liberalization

Kuwait Kuwait building price

The reinforced concrete price has hiked in Kuwaiti national market due to the government’s decision of lifting subsidies on diesel. The price average rise  ranged between 15% and 25% which is equivalent to 2 to 5 Dinars for cubic meter.

The price surge, according to a source in a Kuwaiti building components company, goes back to the costs increase on contractors. The reinforced concrete manufacturing needs a lot of components which needs also special vehicles which run on diesel for freight such as sand and gravel. The majority of contractors tend to deport the costs rise to the final price to compensate the raised expenditures.

The source referred also that some contractors exaggerated in raising the price exceeding the actual costs hike.

He demanded the government to restudy the decision in a comprehensive way and from all aspects, referring that such decisions lead to a number of negative consequences on the whole national market.