Mumbai, Nov. 3 -- Cement makers are banking on price increases to offset rising fuel costs, as higher energy expenses eat into margins amid steady demand and higher sales. After keeping prices mostly unchanged during most of the quarter, companies began raising cement prices in September, nudging them even higher in October. The hikes are expected to boost December quarter realizations-net revenue from cement sales-helping manufacturers ease cost inflation pressure on profitability. The pressure comes as the turbulence in West Asia keeps the energy markets volatile. With coal and petcoke accounting for a significant share of production costs, cement makers have limited room to absorb a sustained increase in fuel prices without compromising margins. Pet coke prices increased from $160 per tonne in March to $188 per tonne in October. UltraTech Cement Ltd, India's largest cement maker, said average trade prices remained broadly stable during the September quarter, before beginning to recover towards the end of the period. In the second half of September, trade prices rose by Rs.7-10 a bag from the preceding month, while non-trade prices saw sharper increases, chief financial officer Atul Daga said during the company's earnings call on 19 October. Trade prices are rates charged through dealers and retailers to individual customers, while non-trade prices are typically lower rates offered directly to bulk buyers such as infrastructure companies and large real estate developers. Prices improved further in October, giving the company a better starting point for the December quarter. "If demand overshoots supply, it leads to price improvements. If there is a structural change in cost for the industry, ultimately, the end customers will have to bear the cost," Daga said. UltraTech's quarterly numbers show precisely the need for such pass-through. Its fuel and power expenses rose 24% year-on-year to Rs.5,511 crore, while fuel cost increased to Rs.51.50 a bag from Rs.45, according to management. Cement companies have taken price hikes primarily thrice this fiscal year. In April, prices were hiked by Rs.10-15/bag, with some rollbacks in May and June. In July and August, prices remained stable, despite the monsoon season. In September, companies raised prices by Rs.5-8/bag, and in October, by Rs.10-12/bag, said Manish Valecha, co-head of research, Anand Rathi Institutional Equities. Ambuja Cements Ltd, the country's second-largest cement maker, also expects the industry to push through further price increases as input costs rise. "We will see more progressive hikes expected in the coming months because the industry is going to pass on some of this cost to the customers if they are beyond a reasonable level," chief executive Vinod Bahety said during the company's earnings call on 29 October. For Shree Cement, India's third-largest cement maker, the September quarter illustrated how higher volumes do not necessarily translate into better unit economics when costs rise faster than prices. Domestic sales volumes grew 18% year-on-year to 9.31 million tonnes, while consolidated earnings before interest, taxes, depreciation and amortization (Ebitda) increased about 4% to Rs.1,016 crore....