BUA Cement rules out plans to increase the price of cement

The Management of BUA Cement Plc has ruled out plans to increase in the ex-factory price of cement.

Ex-factory price means the selling price of a product from the manufacturer’s factory excluding shipping, handling, taxes, and sundry costs.

In a statement on Sunday, the company said it does not intend to increase its price of cement now or in the near future, barring any material and unforeseen circumstances.

The clarification, BUA Cement noted, followed inquiries from stakeholders as to whether it is part of a purported price increase of N300 per bag.

“Whilst we are aware that demand for cement is high with current supply levels not sufficient to meet this increased demand, we do not believe the solution lies in an increase in ex-factory prices of cement – especially not at this period,” the statement said.

“It is our strong conviction that any increase in prices of major commodities at a time like this is not right – whilst Nigerians are still trying to recover from the economic consequences brought about by the covid-19 pandemic – especially for a product for which all raw materials are locally sourced.

The company said it is aware that there is a huge difference between the ex-factory and retail prices of cement.

It attributed the price disparity to retailers taking advantage of increased cement demand to make maximum profits.

“We stand by our previous statements that the timing is not right for any increase in the price of major commodities whilst we work towards ramping up our production capacity to ensure that commodities like cement remain accessible and affordable for our consumers,” the company added.

“BUA Cement therefore wishes to restate that it is not a part of the purported increase in cement prices and we once again enjoin and appeal to our distributors, who have been advised, to ensure there are no further arbitrary increases or excessive profit taking in the retail price of cement.”

Source : Cable News