Spare parts dealers ordered to reduce prices
The Minister of Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, has held an important meeting with the leadership of the Ghana Union of Traders Association, spare parts dealers, and transport operators to find solutions to the irregularities and recent increases in spare parts prices in major markets.
She explained that keeping spare parts prices stable is key for economic stability because the cost of spare parts affects national transport fares.
Mrs Ofosu-Adjare assured the public that the government is committed to promoting fair pricing, transparency, and stability in both the trading and transport sectors.
Context
The meeting, which took place in Accra last Thursday, followed an earlier engagement with transport operators who had expressed worry that unstable spare parts prices were influencing transport fares and worsening the cost of living.
Transport operators noted that even though the cedi has appreciated steadily against the dollar over the last nine months, the cost of spare parts has remained high at 2024 levels, putting pressure on the sector.
Other consumers have also raised concerns about the high prices of goods, especially after the local currency strengthened against the US dollar.
Even though the cost of fuel, some foodstuffs, and the exchange rate have gone down, the prices of consumer goods and cooked food remain high.
Root cause
Mrs Ofosu-Adjare said the government is working to streamline trade policies, improve market monitoring, and remove price distortions in order to protect consumers and support businesses.
She was joined by the Deputy Minister of Finance, Thomas Nyarko Ampem, and invited GUTA, the Abossey Okai Spare Parts Dealers Association, and commercial transport operators to help identify the reasons behind the constant price increases.
Members of the association explained that although prices of many car parts have dropped in recent months, parts for Sprinter buses have stayed high because demand has gone up while supply remains low.
The Deputy Minister of Finance encouraged unions to reduce prices of goods and services to match the recent stability of the cedi.
Mr Nyarko Ampem urged all stakeholders to make sure the improved exchange rate is reflected in their pricing.
The spare parts dealers added that many transport owners do not buy directly from Abossey Okai or registered dealers, but rather from mechanics and middlemen known as “Affairs”.
According to the dealers, these middlemen inflate prices, which creates the wrong impression that the whole market has increased prices.
They therefore advised the public to buy directly from them to ensure product quality and protect their earnings.
All stakeholders agreed to create a common platform to discuss concerns quickly without turning to public confrontations.
Mrs Ofosu-Adjare repeated that her office is always open and that it is unnecessary and unfair for groups to use the media to express concerns when they can directly engage her ministry.
Background
Inflation fell to eight per cent year over year last month, down from 9.4 per cent in September.
This figure is the lowest since mid-2021 and marks the tenth straight monthly drop.
Food prices contributed most to the decline, falling to 9.5 per cent from 11 per cent, even though meals sold at eateries remain expensive.
Goods inflation, which includes items such as clothing, appliances, and processed food, dropped to 9.3 per cent, while services inflation, which covers transport, housing, and education, decreased slightly to 4.6 per cent.
The cedi has also strengthened against the US dollar, moving from about 15.8 cedis in November 2024 to 11.07 cedis on the interbank market as of last Friday.
However, many consumers say these improvements are still not showing in the prices they pay, which led to the minister’s intervention…CONTINUE MORE READING>>>