‘We’re not a part of this,’ BUA distances self from rumoured plan to increase cement price
There are fears that a bag of cement might soon be selling for N4000 due to the growing inflation in the country.
In recent times, there have been 48% increase in the retail price of a bag of cement as a bag of the commodity rose from N2,500 to N3700 between November 2020 and May 2021.
There have been fears that a bag of cement might soon be selling for N4000 due to the growing inflation in the country.
However, BUA has said that it has no justifiable business reason to increase its cement price anytime soon.
The company, which is the second largest cement producer in Nigeria said this in a statement on Friday, June 18, 2021, following a rumoured 10% increase in the price of the commodity.
In the statement titled ‘No further increase in price of BUA cement’, the company said it is not a part of the purported increase, saying the timing is not right for any increase on BUA cement price.
The statement reads in part, “We have been inundated with requests from our distributors and customers seeking clarification as to whether BUA also intends to increase the price of its cement. This is in view of a purported 10% price increase by another major Cement producer.
“While we are now aware that the said producer has increased the price of its Cement (ex-factory) effective Monday, June 14, 2021, we however wish to state that BUA is not a part of this increase and does not seek to increase the price of its cement (ex-factory) in the foreseeable future. BUA therefore restates 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”.
BUA issued the statement two months after debunking a purported increase in the price of its cement.
In April, the company said it did not see an increase in ex-factory prices as a solution to the high demand and insufficient supply of cement in the country.
BUA also appealed to its distributors who are ‘taking advantage of increased cement demand’ to stop increasing the price of the product arbitrarily.
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