City Cement production costs rise 2.32% after fuel price change

City Cement said fuel price adjustments will lift its total production costs by 2.32%, an increase already baked into first-quarter results. The Saudi company said the higher energy expenses are reflected in its Q1-26 financial statements.

The estimate follows a notice from fuel suppliers earlier this year. City Cement first flagged the revision on 5 January 2026, saying it had received official word about changes to pricing on fuel products used in cement manufacturing. Energy accounts for a large share of the company's input costs.

The company has taken steps to soften the blow. It pointed to its participation in the Industrial Sector Competitiveness Program, a national initiative aimed at helping manufacturers improve energy efficiency. That program has helped reduce the overall financial impact of the fuel price increase, the company said. City Cement also said it is pursuing cost reduction measures and adjusting production workflows.

City Cement said it will continue to comply with disclosure requirements from the Capital Market Authority and will update shareholders on any further material developments. The Q1-26 results, due in the coming weeks, will show how much of the cost increase has flowed through to margins. Cement producers across the region have been watching energy costs closely as fuel prices remain a key input.

For a broader look at how energy prices affect industrial input costs, see AlphaScala's commodities analysis.