BUA Cement Plc has denied any plan to increase the price of its cement in the foreseeable future despite the alleged 10 per cent price hike by its main competitor.
A statement quoted the company to have disclosed this in a letter to its distributors and customers, just as it called on members of the public to ignore any rumour of a price increase.
It noted that the timing was not right, saying there were no justifiable business reason for any increase whatsoever.
"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."
BUA insisted that it was not a part of the price increase and would not seek to increase the price of its cement (ex-factory) in the foreseeable future.
The cement manufacturer restated its earlier position it had communicated on April 24, 2021, that it would 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," it added.
It pointed out that since its last communication to its customers, it has noticed a slight decline in the price of cement due to the commencement of the rainy season - during which demand is reduced. As a result of this, we, BUA in the statement maintained that any further increase in prices would hamper a continuous downward trend as well as hamper a normalisation/stabilisation of prices of the commodity."
"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.