The BUA Group says it has not increased the price of cement as done by its competitors.
Following requests from its distributors and customers whether it joined competitors in raising the price of its 50kg bag by N260, the cement companysays it did not.
In a signed statement released Friday afternoon, the BUA group insists that it stands by its earlier decision not to increase cement price which was communicated on April 24, 2021.
A response to the BUA comments on it was still being awaited from Dangote Cement an hour and half after it was sought.
The full statement titled NO FURTHER INCREASE IN PRICE OF BUA CEMENT reads in full:
“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. This is in view of a purported increase of N260 by another major Cement producer – Dangote Cement.
“We are now aware that Dangote Cement has increased the price of its Cement (ex-factory) by N260 effective Monday, June 14, 2021. 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. 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.
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:
1 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 exfactory prices in the foreseeable future.
2. 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 normalization/stabilization of prices of the commodity.
3. 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 the said company has decided to increase their prices, we are not questioning the reason(s) why, but would like to make clear BUA’s position on a price increase.
The Timing is not right for any increase on BUA’s part, and we do not have any justifiable business reason to increase our prices (ex-factory) anytime soon.
We hope that despite this producer’s price increase, the overall retail price of cement and current downward trend in prices will not be affected negatively.