in checking price gouging in the value chain, costly logistics drove by inflation and cyclic demand for real estate, fuelled by currency weakness and low yields from financial instruments are factors aggravating cement prices nationwide.
Specifically, local cement prices are also influenced by input costs, particularly energy and distribution costs. On the one hand, energy prices are affected mainly by the local currency’s devaluation as gas contracts are denominated in U.S. Dollars. On the other hand, distribution cost is affected by the price of petroleum products and the country’s poor road infrastructure.
The cement manufacturers had earlier claimed that their ex-factory prices remained static, attributing the over N1,000 hike in prices to activities of retailers.According to the operators, the huge difference in the ex-factory prices of the commodity and the retail market prices of cement is mostly because of retailers taking advantage of increased cement demand to make maximum profits.
According to them, import restriction on the commodity and the industry’s oligopolistic structure confers the industry players’ premium pricing advantage, as the absence of competition from foreign suppliers has made it possible for the industry players to shun undercutting prices to boost revenue even when demand is weak, given that consumer choices are limited.
An insider in the industry who craved anonymity told The Guardian that the ex-factory price of the commodity is not the same across different distributors, as the value-chain operators get different prices based on the volume of investment and commitment they are able to make to the manufacturer.
Consumer protection?... Buhari government never do better things na to check dictionary meaning of consumer protection 🙄🙄🙄
fccpcnigeria
Obviously
Nigeria Latest News, Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: LeadershipNGA - 🏆 4. / 77 Read more »
Source: LeadershipNGA - 🏆 4. / 77 Read more »
Source: PremiumTimesng - 🏆 3. / 78 Read more »
Source: MobilePunch - 🏆 8. / 63 Read more »