The exponential rise in the prices of petrol and diesel, within a short span of 15 days, is fueling the news feed, sending the media into a political frenzy.

Fuel prices have long since been a leverage for the Opposition and the recent fluctuations have translated into a huge uproar in the Parliament. The previous quarter witnessed massive corrections in cement prices across the country, especially in the southern and western regions, with the surging cost of fuel being one of the important causes. The pan-India average cement prices increased by 5 per cent year-on-year to `365 per 50 kg bag in January. We will continue to feel the impact of this hike across industries, specifically construction and infrastructure.
Coking coal prices continue on their northward trajectory. As per reports, the supply of coking coal from captive mines in Mozambique and Australia should provide some relief. This will impact cement production and pricing directly. With the India-Australia trade pact in place, prices of coal and petcoke are likely to drop as India will be offering zero duty access in over 70 per cent of its tariff lines for Australia, including products like coal. Coal accounts for about 74 per cent of imports from Australia and currently, it attracts 2.5 per cent duty. About
73 per cent of the coking coal, used mostly by steel players, and thermal coal is imported from Australia.
The Russia-Ukraine war has opened up avenues for Indian cement players in Europe. For instance, Dalmia Bharat Refractories (DBRL) is in talks for two acquisitions of refractory producers in Europe. There is great scope for Indian steel companies and engineering exporters. However, with these opportunities come challenges, as the war has spurred production costs thereby affecting optimum production at factories in Europe.
The Comprehensive Economic Partnership Agreement (CEPA) between India and the UAE aims at increasing the bilateral merchandise trade to $100 billion by 2030. One of the key highlights of the agreement include the new import duty by the UAE, which makes it a game changer for the annual export worth about $26 billion from India, which currently attracts 5 per cent import duty. Cement exporters stand to gain from it, too.
Between the war, the global fuel crisis and the cement price rise, the first quarter of the new financial year has begun on an interesting note. It remains to be seen how these events impact the industry in the long run.