‘Hike in water tariff will lead to alcohol consumption’

The National Association of Sachet and Packaged Water Producers (NASPWP) has described the recent hike in water tariff on their operation as an act that will lead to alcohol consumption more than water.

According to the NASPWP, while they are being charged GH¢51 for the production of bottled water, beer producers are being charged GHC10, adding the profitability of both sectors are at huge variance to the advantage of alcohol producers.

The Public Utility and Regulatory Commission (PURC) in December last year increased electricity and water tariffs by 59.2% and 67.2 % respectively, while a 27 percent tax was slapped on petroleum products.

They said the current operational cost for the production of sachet water has been increased by 195 per cent moving from GHC3.8 to GHC11.21 while bottled water has also been increased by 400 percent moving from GHC10.07 to GHC50.76.

Commercial rates moved from GHC3.8 to GHC8.36 representing 120 percent. Industrial rate moved from GHC 3.8 to GHC10.07 representing 165 percent.

The Association at a press conference on Tuesday vowed to increase the sachet water prices to 30 pesewas if nothing is done about the recent hike.

The president of the association Magnus Nunoo told Starr Business various pleas to the PURC to reduce the hike on their operations have fallen on deaf ears.