Since the cedi appreciated over the past few weeks, Ghanaians, including vehicle owners and transport operators, have been basking in excitement as they earnestly await a decrease in the prices of goods. However, this expectation has been hanging in the balance for some time, as consumers anticipate the reduction of prices of goods and services. As the bickering continues, one question that lingers on the lips of many is why the prices haven’t reduced and when they’ll reduce.
Following significant gains by the cedi against the dollar, the Abossey Okai Spare Parts Dealers Association has instructed its members to slash prices. This aims to bring relief to consumers, with the expectation of a reduction in transport fares, as the majority of the parameters that determine the cost of goods and services continue to decline. However, despite this announcement, prices of spare parts have not been subjected to any reduction.
According to the members of the Spare Parts Dealers Association, the reason prices of spare parts are still on the rise is that the goods available in stock were purchased when the value of the dollar against the cedi was still high. Therefore, reducing prices will plunge them into losses.
When asked why the prices of goods remain high despite the cedi’s recent gains, the president of the Ghana Union of Traders’ Associations (GUTA), Dr. Joseph Obeng, stated that prices still remain the same because the traders don’t trust that the gains will last. “When the cedi appreciates, they see the gain, and it’s not sustained,” he explained. He stressed that the work being done by the government and the Bank of Ghana to maintain the gains is more important at this time than the currency’s brief increase.
However, Dr. Obeng cautioned that consumers must lower their expectations for a reduction in prices of goods once the Cedi appreciates against the dollar. He explained that the rise of the Cedi against the dollar is not the only determining factor to reduce prices of goods, stating that utility tariffs and Value Added Tax (VAT) play a role in passing on prices to consumers. According to him, utility tariffs have been increased as well as an unfavourable VAT system, hence traders cannot outrightly reduce the prices of goods. In his opinion, the government must ensure that all factors are considered and tied to the Cedi’s strength.
In obeisance to the association’s instructions, members are expected by the public to cut prices of goods in stock. This will reinforce their collective commitment to fair pricing and market stability.
