The President of the Ghana Union of Traders Association (GUTA), Dr Joseph Obeng, has condemned the recent electricity tariff increase, describing it as unjustified given the significant appreciation of the Ghanaian cedi against the US dollar.

Speaking on JoyNews’ AM Show, Dr Obeng questioned the Public Utilities Regulatory Commission’s (PURC) decision to raise tariffs despite the falling exchange rate, calling the move ill-considered.

“There was no justification for increasing electricity bills. The PURC did not do a good job, especially when the exchange rate is declining, because they cited the exchange rate as a key reason for the hike,” he said.

He warned that such measures risk eroding the economic relief businesses and consumers are starting to enjoy from the cedi’s recovery.

“These decisions will negate the gains we should see from falling prices,” he said, urging the government and regulators to reassess cost burdens on businesses.

Dr Obeng also called on traders to reduce prices to reflect the cedi’s appreciation, emphasising the exchange rate’s critical role in determining costs.

“Pricing depends on multiple factors, and the exchange rate is a major one. The recent drop has been significant,” he noted.

He explained that traders are saving on import duties and foreign exchange transactions, and some of these savings should benefit consumers.

“Duty payments are benchmarked against the dollar, so we’re saving there. We’re also saving on currency exchange. These gains should be passed on.”

Dr Obeng stressed that lowering prices would ultimately benefit traders by boosting consumer purchasing power.

“If consumers can’t afford goods due to high prices, it hurts our ability to turn over stock and repay banks. Reducing prices is in our own interest,” he said.

He added that demonstrating goodwill through price adjustments would strengthen traders’ position when engaging the government on broader economic issues.

“When we show good faith, we can hold the government accountable on other matters. We’re appealing to our members, but pricing involves multiple factors. Still, we want to act in good faith,” he concluded.

Read also: ‘Adjust prices with immediate effect’ – GUTA to traders as cedi gains strength