Business in the country will have to brace themselves up for high operating costs in the coming months.

This is because of the upward adjustment in fuel prices and its associated effects on other cost elements.

Though some business associations are tight lipped about the increasing costs on their operations, others are worried they will struggle to stay in business.

The Ghana Hotels Association is one of them, and its President, Dr. Edward Ackah-Nyamikeh said “the hotel industry will be caught in the ‘tax cross fire’ as I call it that started from May 1^st. And even though the fuel rate has been decreased by 8 pesewas, it is still an increment [9 pesewas].”

 “Don’t also forget that we are looking at the increase in NHIL (National Health Insurance Levy) by 1.0% and also the flat rate which has also gone up by 1.0%...and then we are also looking at a possible upward adjustment in utility tariffs by June”, he noted.

In his view, this will affect all facet of the economy.

“This affects us always and we are also having to grapple with the fact that our staff or workers will also be looking for an upward adjustment in their salaries".

Fuel prices go up

Some major Oil Marketing Companies this week adjusted fuel prices upward at the pumps, following the implementation of some taxes and levies introduced in the 2021 National Budget by the National Petroleum Authority.

Chief Executive of the Association of Oil Marketing Companies, Kweku Agyeman Duah told Joy Business the players don’t have any other option than to comply with these measures. 

“These are genuine tax and levy measures introduced by government that comes into full force. For us as collectors, we need to make sure that we collect fully for the state, so we price accordingly.”