The Director General of the Ghana Standards Authority (GSA), Professor Alex Dodoo, has clarified that the Legislative Instrument (L.I 2480), which will require cement manufacturers to disclose their pricing details is aimed at fostering transparency in the sector.

Prof Dodoo, who is the Chairman of the Cement Manufacturing Development Committee says they're seeking to ensure that cement prices reflect genuine cost factors and deter arbitrary price hikes.

The GSA head gave this clarification while discussing the topic “Regulating the Cement Industry” on Joy FM’s Super Morning Show on Wednesday.

“We’re going into a price disclosure regime. We expect cement manufacturers to provide their pricing details every month. What we do expect is that, let's say, you are operating four types of cement and your factory price is GH₵90. In the first month, we interrogate it alright, but if it begins to change radically, the only question we are going to ask you is ‘What changed?’”

Prof Dodoo emphasised that the GSA will scrutinise price changes to ensure they are justified by factors such as exchange rate fluctuations or changes in utility costs.

“If the changes are explained by exchange rate fluctuations or utilities, it is easy, but if they are beyond and cannot be explained, people will ask questions,” he stated.

The GSA head expressed hope that this transparent pricing regime would be adopted voluntarily by various sectors beyond cement manufacturing.

He pointed out that inflated pricing practices, often driven by non-essential costs, contribute to high costs for consumers.

“The average Ghanaian in pricing will say that, because prices have gone up, if I increase by the exchange rate alone, I will not be able to buy my beer or anything or whatever, so they add their extra cost and their funeral cost and others.”

He therefore believes that with the new policy, opportunistic price hikes that exploit consumers during times of economic fluctuation would be curbed.

“When the exchange rate goes up, they see it as an opportunity to exploit consumers. And that is what we are trying to stop,” he asserted.