The Ghana Union of Traders Association (GUTA) has voiced significant concerns over the recent increase in utility tariffs, questioning the rationale behind the adjustments.
GUTA argues that the Public Utilities Regulatory Commission’s (PURC) decision to raise electricity tariffs by 3.02% and water tariffs by 1.86%, effective October 1, will further strain the already high cost of living, diminishing consumers’ purchasing power and placing additional financial burdens on both households and businesses.
PURC has justified the hikes by citing economic factors such as fluctuations in exchange rates, rising inflation, and increasing gas prices. They assert that these adjustments are necessary as part of their quarterly review of utility pricing.
However, GUTA remains skeptical, contending that instead of passing the burden onto consumers, the focus should be on addressing the root causes of the economic instability leading to these price hikes.
Joseph Paddy, GUTA’s Public Relations Officer, expressed the association’s discontent in an interview with Accra-based Citi FM, stating that the increase is “not justifiable,” especially given the already difficult economic conditions facing 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.”
