Oman Cement Company, the country's largest cement firm by market value, said it is in talks with its government owner about raising prices or possibly face a fall in profit this year.

'If we don't increase cement prices by 1 to 2 rials per tonne, profit might come down in 2008,' Oman Cement chief executive officer Jamal Al Hooti said in an interview in Muscat on Wednesday.

'This is due to high clinker prices, which are rising because of high freight costs,' Hooti said. 'We are selling cement now for 26 rials per tonne, but the fair value should go up by 1 to 2 rials per tonne.'

Asked whether they plan to increase cement prices, he said, 'We are still discussing it with the government.'-Reuters