One week BUA Cement raised consumer expectations, the reviewed price per bag is yet to take effect with the product still retailing at the old price between N5,300 and N5,500 in Lagos.
The BUA Cement Plc recently announced a reduction in the ex-factory cost to N3,500 for every 50kg bag, starting from October 2, 2023.
The situation is corroborated with reports from several retailers and cement distributors confirming that the price remains unaffected.
According to a survey conducted by Nairametrics, data collected from 17 cement retail stores in the Ikorodu region of Lagos reveals that BUA cement is presently available at the old prices ranging from N5,300 to N5,500 per bag.
A cement retailer located at Parafa, Ikorodu, revealed that even though he heard about the announcement, the current price from the distributors remains the same.
According to this vendor, the prices are yet to trickle down to the retailers due to logistics as well as other operating costs on the part of the distributors.
In his words, “Truly, we heard that the price of BUA cement has been reduced to N3,500 per bag, however, that is most likely the price sold at the cement factory located in Okpella, Edo State.
“As cement retailers in Lagos, when you factor in the logistics costs of bringing the product down here (Lagos), along with other costs, the price goes up”.
The retailer, who sells at the rate of N5,400, also noted that BUA cement is not a competitive cement in Lagos compared to contemporaries such as Dangote and Elephant Cement.
Another retailer, whose depot is located beside Taramed Filing Station, Ikorodu, explained to Nairametrics that the prices have not reflected on the side of the distributor, forcing them to buy at the old price rate between N5,300 and N5,500.
According to her, “There is the issue of the cement stock sold at the reduced price not being sufficient to meet the demand for the product.
“And because of this, the distributors of BUA cement aren’t able to readily provide us with the quantity of cement we need.
“The delay in getting our cement stock also contributes to the addition to the retail price of the cement”.
“I don’t think the manufacturers intended to truly slash the price of the cement, instead, I think the announcement of price reduction was to gain favour from the public and make the cement more popular,” she added.
The third cement dealer located at Marvelous Estate, Itokum Road pointed out the patronage of BUA cement is rather low in the rainy season due to the time it takes to consolidate when used in making bricks. According to her, people prefer to opt for other products during the rainy season.