Decision No. 427 of 2024: Price Control on Bagged Portland Cement

The Ministry of Economy and Trade sets a maximum ex-factory price of 39.5 LYD per 50kg bag for Portland cement. A portion of revenues must be allocated to affected municipalities for spatial development and social welfare. Cement producers must fulfill corporate social responsibility requirements in-kind only, with monetary payments prohibited.

Foreign cement producers and JV partners face mandatory price ceilings that may compress margins, particularly if input costs rise. The in-kind CSR requirement and revenue allocation to municipalities create non-negotiable overhead costs with uncertain accounting treatment. Companies must now navigate a quarterly price review process by a technical committee, introducing regulatory unpredictability into medium-term planning and potentially affecting investment returns in the cement sector.