Despite high expectations from consumers following the announcement of a price reduction in the unit price of BUA Cement, the price change is yet to reflect across major markets as the product is still being sold at the old price. It would be recalled that the management of BUA Cement had, on Sunday, announced a reduction in the ex-factory price to N3,500, effective October 2, 2023.
This move followed the company’s earlier promise to reduce cement prices by January 2024, upon the completion of its new lines at the end of this year. Many end users had expressed initial skepticism, saying this was not the first time the company had made such a promise but did not follow it through.
Three days after the announcement, the new price is yet to reflect as a visit to some major markets and cement distributors showed that not only has BUA Cement become scarce, the price has remained unchanged among dealers that have it in stock.
Speaking with a major dealer at Oke-Gbegun Sawmill in Ikorodu area of Lagos state, Safiriyu Abideen, said he read about the price slash in the papers but nothing was communicated to him and his colleagues and that they were still selling at the old price.
“BUA is still retailing for N5, 200/5, 300. I heard about the price slash but we were not told anything plus we bought at the old price. Am I supposed to sell at N3,500 because they said so on paper? People have been coming here to ask for BUA Cement but when I tell them the price, they start arguing that it is now N3,500, I simply ask them to check elsewhere.
“No one can sell below N5, 200 and even at that price, it is a giveaway because the total cost price is N5,050.” He added that Dangote Cement still retails at N5,300 while Elephant Cement is still the ‘cheapest’ at N5,100.
Another dealer at Pako building market in Isolo, Oyenike Adeyemi, said she also heard about the price slash but wondered how that was going to happen, as the product has never been available in the past and feared that this price slash would worsen the situation.
She said even if the company reduces the ex-factory price to N3,500, dealers could still not sell at that price because logistics and transportation have both gone up.
“Diesel is between N1,000 and N1,100 per litre in many areas; we will factor this into retail prices. Also, onloading and offloading costs have gone up, which will also be factored into the selling price. There are other costs,” she explained.
A visit to the building materials market in Oshodi saw the same results as all traders and distributors who visited all said they did not have BUA Cement.