Audio By Carbonatix
An economist says the recent appreciation of the Ghana Cedi and reduction in fuel prices may not lead to a corresponding drop in the prices of goods due to the country’s manual approach to economic management.
Dr Samuel Worlanyo Mensah said that until Ghana adopts an automated economic analysis and decision-making system, such changes in macroeconomic indicators would not automatically reflect in the pockets of ordinary Ghanaians.
He told the Ghana News Agency (GNA) in an interview that Ghana’s economy was not structured in a way that allowed price adjustments to occur seamlessly in response to positive economic indicators.
“While the strengthening of the cedi and the falling fuel prices were commendable developments, that alone could not guarantee a reduction in the cost of living,” Dr Mensah, who is also a cleric said.
He added: “We have not re-profiled the economy on automation, and there are manual dimensions that go into reductions, especially in transport fares.”
Dr Mensah because the Ghana Private Road Transport Union (GPRTU) determines transport fares manually based on consultations and calculations rather than automated pricing models, it delays the expected reduction in transport fares, even when fuel prices fall.
He urged Ghanaians not to expect immediate reductions in the prices of goods and services but rather to anticipate a period of stability, saying that “our expectations should be stability instead of reduction because stability also leads to improvement in our standard of living.”
Meanwhile, some commuters in Nungua and Tema are unhappy that the reduction in pump prices has yet to translate into lower transport fares.
“I spend nearly GH¢26 on transport daily, and this has not changed even though we hear fuel prices are decreasing. I am surprised we’re all quiet about it, but something must be done about it,” Mr Asare Nyako, a civil servant, said.
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