GH¢15 sachet water price is a ceiling, not fixed - Producers clarify
Sachet water producers clarified that the recently announced GH¢15 price for a bag of sachet water is a maximum retail limit and not a uniform selling price across the market.
According to Kwame Agyapong-Ntra, the price cap is intended to serve as a guideline in response to rising production costs driven by global economic pressures. He explained that escalating crude oil prices have significantly increased the cost of polymers used in sachet water production, stating, "The Middle East conflict has had repercussions on fuel prices. The material we use is derived from petroleum, so when oil prices rise, the cost of production also increases. This informed the decision to adjust prices. The maximum price will be ¢15." He further noted that suppliers have declared force majeure, resulting in higher input costs and forcing producers to review their pricing structures. Mr. Agyapong-Ntra emphasized that retailers are not obligated to sell at GH¢15 unless market conditions make it necessary, stressing that prices may vary depending on operational costs and supply conditions.
Mr. Agyapong-Ntra stated, "It is inaccurate to suggest that sachet water will be sold at 15 cedis across the board. Even with rising costs, prices are not expected to exceed that ceiling." He also said, "We cannot predict when the conflict will end, and even if it does, it will take time for prices to stabilise. A force majeure has been declared by suppliers, leading to increased costs, and we have had to respond accordingly."
Quick Summary
Sachet water producers in Ghana have provided clarity regarding the recent price announcement. They've indicated the GH¢15 price point is a ceiling-hinting at the factors influencing the decision.
Summary - read the full story for complete context.
Image: MyJoyOnline
Also covered by
GhanaFront aggregates news from trusted sources. Click to read the original article.
Keywords
Explore related tagsMore from MyJoyOnline
Related Stories
More from Business & Economy
ECG injects GH¢3m into power upgrades across 40 Accra communities
ECG invests millions to upgrade power in Accra communities - but will it be enough to solve the persistent challenges?
2d ago•2 min read
