Parliament summons trade groups over high prices despite cedi gains

Parliament’s Committee on Trade, Industry, and Tourism has summoned several major trade groups to explain why they have not reduced prices, despite the recent appreciation of the Ghana cedi and a drop in fuel prices.

Among those called to appear are the Ghana Union of Traders Association (GUTA), the Association of Ghana Industries (AGI), the Spare Parts Dealers Association, and other key industry players. The meeting is aimed at understanding their reluctance to lower the cost of goods and services.

Traders argue that they cannot reduce prices yet because they are still selling off old stock purchased when the cedi was weaker and fuel prices were higher. However, this explanation has not satisfied Parliament, which is demanding clearer justification.

Chairman of the Committee, Alexander Gabby Hottor-Dze, acknowledged that some price cuts have occurred but said they are not enough.

“There has been price reduction in some quarters, but these are not commensurate with the impact of the appreciation of the cedi,” he stated.

Explaining the reason for the meeting, he said,“The Committee on Trade, Industry, and Tourism called for this engagement to inquire into why businesses and service providers are reluctant to reduce their prices, the impact on the economy, and the way forward.”

“We have assembled here most of the relevant stakeholders who would assist the committee to deliberate on the matter,” he added.

Last month, the Abossey Okai Spare Parts Dealers Association asked its members to lower prices a decision expected to ease pressure on consumers and possibly lead to reduced transport fares. GUTA also suggested that price reductions might be possible, given the cedi’s improved performance.

However, many consumers say they are yet to feel any real change. Despite the positive trends in the economy, they argue that the prices of basic goods and services remain unreasonably high.

Parliament hopes that this engagement with the business community will lead to actions that reflect the current economic improvements and bring relief to the public.