BUA Cement Plc has assured that it has no plan to increase ex-factory price of cement.
Ex-factory price is the selling price of a product from the manufacturer’s factory, excluding shipping, handling, taxes and other costs.
In a statement released on Sunday, the company ruled out any intention to increase its price of cement now or in the near future, barring any material and unforeseen circumstances.
BUA Cement noted that the clarification was necessitated by 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.
According to TheCable, the company also said it is aware that there is a huge difference between the ex-factory and retail prices of cement.
It blamed the price disparity on retailers who are taking advantage of increase in demand for cement to make 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.
“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,” the company stated.