The President of Ghana Union of Traders’ Associations (GUTA), Dr Joseph Obeng has appealed to traders to adjust prices, as the cedi appreciates.
According to him, traders cannot enjoy the gains alone, but must transfer some of the benefits to consumers (customers), who were also affected when the Cedi depreciated against the US Dollar.
Dr Obeng, in an interview on Kumasi-based radio station, Otec FM, on Monday, told the host of “Dwabrem Show”, Prince Ade (Dr Cash) that though Ghana is not under “price control regime” it would be in the best interest of traders to adjust prices to reflect the current exchange rate.
The GUTA President said the market was in the “recouping lost capital” phase and stressed that it was the responsibility of traders to give some of the benefits to consumers.
Refusing to share the benefits thereof, he noted, would result in low patronage of goods since the Ghanaian market is the buyers’ one, where the buyer has the upper hand and discretion to “reward or punish”.
Dr. Obeng noted that traders are not an island in the market scene, but need customers’ participation to facilitate economic growth.
The President of GUTA acknowledged the challenge of traders, who still have stocks bought at the old exchange rate as a result of which adjustment of prices could be hindered.
He, however, urged such traders to strike a “reasonable average price” by mixing new and old stock to stay in competition since other competitors will take advantage and adjust their prices.
The GUTA head also noted that reduction in prices will also attract consumers from neighbouring countries, which will facilitate the economic growth of the nation.
Dr. Joseph Obeng further noted that the ultimate goal of traders currently must be “turning over”, where they can quickly sell their inventory (old stock) in this given period.
The GUTA President entreated his members to resort to the “principles of fairness” and adjust prices to reflect the current exchange rate, or risk losing the “faith and support” of consumers, as well as making lobbying for higher prices difficult.
On the sustainability and presentability of the Cedi appreciation, Dr Joseph Obeng disclosed that the market reforms to the change that occurs, as the market will respond when the exchange rate goes up or down.
Dr Obeng also indicated that Valued Added Tax (VAT), which is under review, needs to be restructured noting that VAT is a “key component that makes things (prices) go up.”
He further urged the Public Utilities Regulatory Commission (PURC), who earlier this month effected an upward adjustment in the average end-user tariff for electricity and water by 14.75% and 4.02% respectively, to significantly reduce the utility tariff because “…higher utility taxes negate all the gains from the Cedi appreciation..”
From Oswald Pius Freiku, Kumasi
