The pockets of Ghanaians are set for a major hit as the Ghana National Chamber of Commerce and Industry (GNCCI) says the public should brace for a sharp rise in the cost of goods and services following the latest utility tariff hikes.
The PURC has announced an upward review of electricity and water tariffs, which are set to take effect on May 1, 2025. According to the latest Quarterly Tariff Review Mechanism, Ghanaians will experience a 14.75% increase in electricity while water will also increase by 4.02%.
The Commission justifies that the upward review was necessary considering the significant changes in variables such as exchange rate, inflation, cost of natural gas, and hydro-thermal power.
But the CEO of GNCCI, Mark Badu Aboagye, says the hike is inimical to both businesses and consumers.
The CEO says businesses are already struggling and hence, they will have no choice but to transfer the additional cost to consumers in order to stay afloat.
In an interview monitored by The High Street Journal, the GNCCI boss warned consumers to prepare for the hike in goods and services, describing the situation as a double slap.
“Businesses cannot bear these high payments. So a chunk of it will be given to the consumers also to bear. So we should obviously prepare ourselves for an increase in prices. I mean, if it cut across, then prices for every commodity are going to increase. And it’s not the fault of the business, it’s not the fault of the producers,” Mark Badu Aboagye warned.
He admitted that businesses are not pleased with the imminent increase in costs for consumers, but it’s a question of saving their businesses from collapse due to high operational costs.
“If you are increasing my cost of production, if I don’t do something about it, it means my business will also collapse. So we are going to pass on a huge chunk of this increment also to consumers,” he indicated.
He added “And it’s not only about electricity, it’s water as well. Most of the businesses use both electricity and water. So you are receiving two slaps at the same time. And, of course, you have to be strong. You have to find a way to survive. So obviously, we’re going to pass on this increment to consumers.”
With this warning, not only will the electricity and water bills for households increase. The ripple effect of the hike will be felt deep in the pockets of Ghanaians as the cost of living is expected to increase, making life unbearable for the low-income earner and the vulnerable.
The GNCCI’s statement serves as a wake-up call to policymakers and consumers alike that a season of higher prices is fast approaching, and there may be no escape from its reach.
