BUA Cement logo
By Our Reporter
BUA Cement Plc has increased the ex-factory price of its cement with N200,00 despite a statement issued by the company last month that the price of cement would not be increased.
The company over the weekend increased the price from N2800 to N3,000 per bag.
The company had in a statement urged the public to ignore any rumour of a price increase.
“We are compelled to release this statement following requests from our distributors and customers seeking clarification as to whether BUA also intends to increase the price of its cement,” the company said.
BUA said it is not a part of any arrangement by others to raise prices,
‘’BUA is not a part of this increase and will not seek to increase the price of its cement (ex-factory) in the foreseeable future,’’ it said, restating that it stands by ‘’its earlier position communicated on April 24, 2021 that it will not join in any increase in the prices of cement for the foreseeable future.
“Whilst we believe it is the prerogative of any company in a free-market economy to determine the prices of their products as they deem fit, based on their urgent business needs, our position not to increase our own prices is anchored on the following:
“We are aware of the feedback and outcry from the public, and the government on the high retail price of cement in a period of economic recovery. BUA is also of the firm belief that the current retail prices of cement are higher than normal, hence our earlier communication not to increase ex- factory prices in the foreseeable future..
“Since our last communication to our customers and the public, we have noticed a slight decline in the price of cement due to the commencement of the rainy season – during which demand is reduced. We believe that any further increase in prices will hamper a continuous downward trend as well as hamper a normalisation and stabilisation of prices of the commodity.”
It said as a responsible corporate entity, “we refuse and reject associations with any actions that are deemed capable of projecting any industry we operate in as a cartel. Hence, whilst we respect that any company has a right to increase its prices, we are not questioning the reason(s) why, but would like to make clear BUA’s position on a price increase.”