The Ghana Chamber of Commerce and Industry has cautioned that the recent increase in utility tariffs will lead to a significant rise in the cost of goods and services, as businesses struggle to manage rising production costs.
This follows the announcement by the Public Utilities Regulatory Commission (PURC) of a 14.75% increase in electricity tariffs and a 4.02% hike in water charges, set to take effect from May 3.
Reacting to the development, the Chief Executive Officer of the Ghana Chamber of Commerce and Industry, Mark Badu-Aboagye, said businesses are already grappling with soaring operational costs, and the tariff adjustments will only worsen their plight.
According to him, most companies, especially small and medium-scale enterprises, cannot absorb the added financial burden and will be left with no option but to pass on a substantial portion of the cost to consumers.
He noted that the increases in utility costs come at a time when inflation remains high, making it harder for businesses to stay afloat.
“If the cost of production keeps rising while policy rates and utility tariffs go up, achieving the 11.9% inflation target as projected in the national budget will be difficult,” he said.
Mr. Aboagye also expressed concern that the cumulative impact of higher electricity and water costs will deal a heavy blow to businesses.
He emphasized the need for a more strategic approach to economic management that supports enterprise growth without overburdening consumers.
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