The Ghana Union of Traders' Associations (GUTA) has strongly criticised the recent increases in utility tariffs. GUTA maintains that positive economic indicators should have led to a reduction in tariffs, not an increase. Joseph Paddy, GUTA Vice President, expressed this view on Joy News' PM Express on Tuesday, July 1, 2026.
GUTA argues that several key economic factors, cited by regulators to justify the tariff adjustments, have actually moved in a favourable direction. These factors include an appreciating and stable Ghana Cedi, along with declining interest rates. Businesses expected these improvements to translate into lower utility prices, easing their operational costs.
This development unfolds against a backdrop of ongoing efforts to stabilise Ghana's economy. The Cedi has shown sustained stability against the US dollar over the past 15 to 16 months. This follows a period of significant depreciation, where the exchange rate reached GHS 17 to $1. Currently, the Cedi trades at approximately GHS 11.25 to $1. This currency stability, coupled with a drop in interest rates to around 12%, indicates a generally improving macroeconomic environment.
GUTA Vice President Joseph Paddy stated, “In the letter, all the proposals they put in place - fluctuation of the cedi, about four issues they cited - we see they are all in a positive direction. If they are in a positive direction, then why do you want to increase utility tariffs?” He also highlighted the lack of stakeholder engagement, saying, “We slept one night, woke up in the morning, and we heard announcements that they’re going to be tariff adjustment increase, and we’re like, why, when we were not engaged.” Such consultations are crucial for good governance and inclusive decision-making that impacts businesses and consumers.
The tariff adjustments are likely to increase operational costs for businesses across various sectors. This comes despite expectations of relief from the improved Cedi and lower borrowing costs. Decision-makers and market participants will closely monitor how these increased utility costs affect consumer prices and business profitability. The Public Utilities Regulatory Commission (PURC) may face renewed calls for transparency and broader stakeholder consultation in future tariff reviews. Businesses could pass on these higher costs to consumers, potentially impacting inflation rates.