Why cement prices went up in 2026

How much prices rose

The average price of a bag of cement was about Rs 1,596 in the week to 8 October 2026, against about Rs 1,395 a year earlier, according to Pakistan Bureau of Statistics figures reported by Minute Mirror. In the north, prices rose another Rs 25 to 30 a bag in late September alone.

Coal is the biggest part of the story

Cement kilns run on coal, and most large plants burn imported coal. The South African coal they buy averaged about 114 dollars a tonne in July to September, up from about 90 dollars a year before. Brought to Pakistan, that is around 133 dollars a tonne.

Analysts at Sherman Securities estimate that each 10 dollar rise in coal adds about Rs 30 to the cost of a bag. On that basis, coal alone accounts for at least Rs 20 of this year's increase, Minute Mirror reported.

Why coal got expensive

The disruption in the Strait of Hormuz since February cut gas supplies across the region, and power stations and factories that lost gas turned to coal. More demand pushed prices up worldwide.

Northern cement plants had a second problem. They used to burn a lot of cheap Afghan coal, and with the Afghan border closed to trade since October 2025, they have had to replace it with coal shipped from South Africa, Indonesia and Mozambique.

Diesel and transport

Diesel went above Rs 420 a litre in September and goods transport rates rose by up to 40% over the summer. Cement moves by truck from the plant to the market, so freight added roughly another Rs 15 a bag.

Will prices come down?

That depends mostly on world coal prices and on whether the Afghan border reopens to trade. Diesel has eased a little since mid October. Some plants are also using more local coal from Balochistan and planning to use coal from Thar, which costs less, though neither can fully replace imported coal in the short term.