Ghana's persistent economic challenges are significantly impacting consumers, businesses, and households alike. Key among these challenges are the ongoing debates and concerns surrounding escalating water and electricity tariffs.

The government defends these tariff increases as essential for covering operational costs, meeting financial commitments, maintaining infrastructure, and ensuring the sustainability of services.

Despite varying consumer opinions on these justifications, the tariff hikes persist, with announcements led by the Public Utilities and Regulatory Commission (PURC).

From July 1, 2024, Ghanaians will encounter higher costs across several essential commodities and utilities, including water, electricity, cement, and fuel.

Water and Electricity

Ghanaian households and industries are set to confront higher utility tariffs for both water and electricity. This increase was previously announced by the Public Utilities Regulatory Commission (PURC) during their second-quarter review.

As per the PURC, electricity tariffs will rise by 3.45% for lifeline consumers using up to 30 kWh, while residential and non-residential consumers using more than 30 kWh will face a 5.84% increase.

Similarly, major industries in the country will experience a tariff hike of 4.92% for electricity consumption.

Concurrently, water tariffs will see a 5.16% increase across all customer categories as part of Ghana's Quarterly Tariff Review Mechanism adjustments.

The PURC specified that these changes will be effective from July 1, 2024, through September 2024, signaling a period of heightened operational costs for water and electricity consumers nationwide.

Cement

In the first half of this year, Ghana has witnessed a notable surge in cement prices, impacting a critical sector: construction, which heavily relies on this essential material.

Leading companies like Ghacem, Dzata Cement, and Diamond Cement attribute the price increases to rising costs of transportation, electricity, and raw materials.

By May, cement prices had climbed by GH¢10.00, reaching approximately GH¢95 per bag (32.5R) at certain depots across the country. This rise has already disrupted construction projects, affecting their schedules.

Starting July 1, depending on the source, a bag (32.5R) is expected to sell for over GH¢108, varying by brand and quantity from current prices.

Meanwhile, the Ministry of Trade is moving forward with a Legislative Instrument (L.I.) to regulate cement prices. Trade Minister Kobina Tahir Hammond argues that this step is essential to prevent arbitrary pricing and potential exploitation by cement manufacturers.

However, some cement producers strongly oppose this initiative, claiming the government did not adequately consult them before pushing for the L.I.

Fuel

Consumers can expect a rise in petroleum prices over the next two weeks, reflecting adjustments during the first pricing window of July, with petrol set to increase by 2%.

Currently, GOIL is selling one litre of petrol at GH¢14.60, while diesel is priced at GH¢14.75 per litre.

The Institute for Energy Security forecasts a 4.0% increase in diesel prices across various pumps, alongside a 5% hike in Liquified Petroleum Gas (LPG) costs.

These price hikes are attributed to the cedi's depreciation against the US dollar, which is trading at approximately GH¢15.60 in the forex market. Additionally, the US dollar has strengthened in the global oil market.

As of July 1, 2024, Brent crude futures climbed 42 cents to $85.42 per barrel by 0845 GMT, while U.S. West Texas Intermediate crude futures rose 44 cents to $81.97.