GUTA President criticises electricity tariff hike amid cedi gains

Dr. Joseph Obeng, President of the Ghana Union of Traders Association (GUTA), criticized the recent electricity tariff increase. He called it unjustified due to the Ghanaian cedi's appreciation against the US dollar.

In an interview on JoyNews’ AM Show, Dr. Obeng questioned the Public Utilities Regulatory Commission’s (PURC) decision. He found it ill-considered to raise tariffs while the exchange rate is falling.

“There was no justification for increasing electricity bills,” he stated. He noted that PURC did not handle this well, especially since they cited the exchange rate as a reason for the hike.

Dr. Obeng warned that these measures could undermine economic relief for businesses and consumers. “These decisions will negate gains from falling prices,” he said, urging a reassessment of cost burdens on businesses.

He also urged traders to lower prices in line with the cedi’s appreciation. He emphasized that the exchange rate significantly impacts costs.

“Pricing depends on multiple factors, and the exchange rate is major,” he explained. The recent drop in rates has been significant.

Traders are saving on import duties and foreign exchange transactions, which should benefit consumers. “Duty payments are benchmarked against the dollar, so we’re saving there,” he added.

Dr. Obeng stressed that lowering prices would help boost consumer purchasing power. “If consumers can’t afford goods due to high prices, it hurts our sales,” he said.

He noted that reducing prices is in traders' best interest for stock turnover and bank repayments.

Demonstrating goodwill through price adjustments would strengthen their position with the government on broader issues.

“When we show good faith, we can hold the government accountable,” he concluded. GUTA appeals to its members but acknowledges pricing involves multiple factors while aiming to act in good faith.