The Ghana Union of Traders Association (GUTA) has raised concerns over the recent increase in water and electricity tariffs, questioning the justification behind the adjustments.

GUTA argues that the hike will further diminish consumers' purchasing power, adding to the financial strain on the public.

On Saturday, September 28, the Public Utilities Regulatory Commission (PURC) announced a 3.02% increase in electricity tariffs and a 1.86% rise in water tariffs for the third quarter of 2024, effective October 1.

The PURC cited factors such as exchange rate fluctuations, inflation, and rising gas prices as reasons for the upward adjustments.

The Public Relations Officer for GUTA, Joseph Paddy, expressed concerns that the increase would negatively impact many Ghanaians' living standards.

He warned that these new tariffs would worsen the financial burdens already being felt by businesses and consumers alike.

Mr Paddy further emphasised that the timing of the tariff hikes is unfortunate, as it comes at a time when the cost of living is already high.

GUTA urged the government to reconsider the decision and take steps to cushion the effects of the rising utility prices on the population.

“The new tariff is not justifiable. That [the new tariff] is a result of increasing gas prices and also interest rates and exchange rates going up. Who caused the exchange rate to go up? And that is what the fiscal committee has been complaining about, the instability in the system."

“So they should come again otherwise, it is going to make the cost of living in the country extremely difficult for Ghanaians and very high."

“Already, Ghanaians are complaining that the cost of living is extremely high in the country. And then coupled with that, we are bringing this increase at this critical moment. Even the timing is also a challenge," he said.