President of the Ghana Union of Traders Association (GUTA), Dr. Joseph Obeng, has emphasized that the cedi’s recent gains against the US dollar are not enough to trigger a significant drop in commodity prices and that a reduction in utility tariffs is also necessary.
Speaking on TV3’s Saturday morning show on May 17, Dr. Obeng explained that high production costs, largely driven by imported inputs, continue to exert upward pressure on prices, noting that approximately 90% of manufacturing inputs in Ghana are imported.
“The strength of the cedi alone cannot act in isolation; it should be tied to VAT reforms, which are crucial.
“We also need to address the cascading effect of taxes and the high utility bills.
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Dr. Obeng urged the government to reduce utility tariffs, citing the Public Utilities Regulatory Commission (PURC) as a key stakeholder in this process.
He argued that the recent depreciation of the forex rate should negate any justification for increasing tariffs.
“So we have to check all these things and not put everything on the importer.”
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He emphasized the importance of a holistic approach to addressing the complex factors influencing commodity prices in Ghana.
