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Tag: No Increase

  • No Plan To Increase Cement Price, BUA Assures Stakeholders

    No Plan To Increase Cement Price, BUA Assures Stakeholders

    BUA Cement Plc has ruled out an increase in the ex-factory price of cement.

     

    Ex-factory price means the selling price of a product from the manufacturer’s factory excluding shipping, handling, taxes and sundry costs.

     

    In a statement on Sunday, the company said it does not intend to increase its price of cement now or in the near future, barring any material and unforeseen circumstances.

     

    The clarification, BUA Cement noted, followed inquiries from stakeholders as to whether it is part of a purported price increase of N300 per bag.

     

    “Whilst we are aware that demand for cement is high with current supply levels not sufficient to meet this increased demand, we do not believe the solution lies in an increase in ex-factory prices of cement – especially not at this period,” the statement said.

     

    “It is our strong conviction that any increase in prices of major commodities at a time like this is not right – whilst Nigerians are still trying to recover from the economic consequences brought about by the covid-19 pandemic – especially for a product for which all raw materials are locally sourced.

     

    The company said it is aware that there is a huge difference between the ex-factory and retail prices of cement.

     

    It attributed the price disparity to retailers taking advantage of increased cement demand to make maximum profits.

     

    “We stand by our previous statements that the timing is not right for any increase in the price of major commodities whilst we work towards ramping up our production capacity to ensure that commodities like cement remain accessible and affordable for our consumers,” the company added.

     

    “BUA Cement therefore wishes to restate that it is not a part of the purported increase in cement prices and we once again enjoin and appeal to our distributors, who have been advised, to ensure there are no further arbitrary increases or excessive profit taking in the retail price of cement.”

  • No Increase In Price Of Petrol Until Talks With Labour Concluded –NNPC

    No Increase In Price Of Petrol Until Talks With Labour Concluded –NNPC

     

    The Nigerian National Petroleum Corporation (NNPC) says it will maintain the current ex-depot price of premium motor spirit (PMS), better known as petrol, until the end of negotiations with organised labour.

     

    Kennie Obateru, Group General Manager, group public affairs division of NNPC, disclosed this in a statement on Friday.

     

    This development comes after Mele Kyari, NNPC General Managing Director (GMD), said the NNPC can no longer bear the cost of subsidy on its books.

     

    Kyari had said the NNPC can no longer bear the burden of underpriced sales of petrol, adding that the market price needs to be implemented.

     

    He said NNPC pays between N100-120 billion a month to keep the pump price at the current levels.

     

    In the statement, Obateru said although the NNPC currently bears the burden of petrol subsidy, current price will be maintained at N162 until ongoing engagement with the organized labour and other stakeholders are concluded.

     

    He said the NNPC has no intention to preempt ongoing engagement with labour by unilaterally increasing the ex-depot price of petrol.

     

    Obateru said the NNPC has made arrangements for robust stock of petroleum products in all its strategic depots across the country to keep the nation well supplied at all times.

     

    He urged petroleum products marketers to desist from arbitrary price increase or hoarding of petrol.

     

    The spokesman also warned against panic buying, stressing that NNPC was committed to ensuring energy security.

     

    In February, Timipre Sylva, minister of state for petroleum resources, had warned Nigerians to get ready to bear the pains of increased petrol pump price as crude oil prices climbs above $60 per barrel.

     

    The increase in the price of crude oil bodes well for the Nigerian economy as this will boost the county’s revenue needed for the implementation of the 2021 budget, improve crude oil receipts and consequently bolster foreign exchange inflows.

     

    However, the prolonged high crude prices would ultimately feed into a climb in petrol’s landing cost — meaning an increase in fuel price. This would further weaken the purchasing power of Nigerians who are already battling with high inflation, unemployment and stuttering economic growth.