The growing public outcry over the announcement of a uniform sachet water price hike beginning next week has prompted CUTS International Accra to call on the government to step in urgently and intervene in the development.
CUTS International warns that coordinated price hikes risk undermining consumer welfare and market fairness.
The West African Regional Director of CUTS International, Appiah Kusi Adomako, Esq, is advocating that the Ministry of Trade, Agribusiness and Industry, and the Attorney General’s Department must immediately engage the National Sachet and Packaged Water Producers Association (NASPAWAP) and push for the withdrawal of any directive that imposes uniform pricing across the industry.
The justification for this call on the government is that while businesses have the right to associate and advocate for their interests, that right must not extend into coordinated actions that limit competition and ultimately hurt consumers.
He further explains that sachet water is not a luxury; it is an essential good for millions of Ghanaians, and hence, any artificial alignment of prices removes the natural benefits of competition. In a functioning market, different producers should price independently based on their costs and efficiencies. That variation, he argues, is what gives consumers choice and helps keep prices in check.
The current situation, however, risks flattening that competitive landscape. If all producers move prices in the same direction at the same time, consumers are left with no meaningful alternatives, effectively paying more regardless of brand.
CUTS insists that government intervention in this case is not about controlling prices, but about restoring the conditions for fair competition.
“Even in a free market, the state has a duty to prevent market failures like collusion that harm public welfare. Sachet water’s essential nature justifies intervention to protect consumers without stifling legitimate business,” the consumer protection advocate argued.
He continued, “The Ministry of Trade, Agribusiness and Industry (MOTAI) and the Attorney General should engage NASPAWAP immediately and demand the withdrawal of any directive that imposes uniform pricing.”
In his view, producers must be allowed to determine their prices independently, even if it means one brand sells at GHC 10 and another at GHC 12.
He further urges the Trade Ministry and Attorney General to convene urgent stakeholder discussions with producers. These engagements would aim to encourage a temporary deferral of the price increases while the underlying cost pressures, such as raw materials and production inputs, are independently verified.
Such a process, CUTS argues, would introduce transparency into the pricing debate and prevent premature or unjustified increases.
“The government, through the MOTAI and AG, can convene urgent stakeholder dialogues with producers to encourage deferral of the increase while costs are independently verified, as well as consideration of alternative raw material sourcing markets,” he indicated.
By engaging producers constructively, Appiah Kusi Adomako believes that the government can explore alternative sourcing options for raw materials and identify ways to reduce production costs without transferring the burden to consumers.
