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Business News of Wednesday, 13 October 2021

Source: www.ghanaweb.com

Removal of PRSL will have no effect on high food prices – GAWU

Prices of food items have been on rise this year Prices of food items have been on rise this year

• GAWU is not expecting a reduction in food prices anytime soon

• President Akufo-Addo has granted approval for fuel levies to be removed

• The removal of the PRSL is expected to last for two months


The decision to remove the Price Stabilization and Recovery Levies (PRSL) on petrol, diesel and LPG for the next two months is not expected to impact on high prices of food items on the market.

According to the General Agricultural Workers Union (GAWU), a number of impediments that affect the transportation of food items and poor road networks will first have to be addressed before the prices can stabilize or reduce.

In an interaction with Citi Business News monitored by GhanaWeb, General Secretary of GAWU, Edward Kareweh explained, “I don’t see the removal of the Price Stabilization and Recovery Levies resulting in a reduction in food prices because there are many factors that affect transportation. It’s not only about fuel prices, it includes spare parts, bad roads and so on”.

He continued, “Once the road network is not good, once the prices of spare parts are high, even if you reduce fuel prices, it’s only one component of the cost. The other components are still intact, and they are still going up. So, the reduction in fuel price alone will not be enough to compensate for the other costs that I have mentioned. That’s why I am saying food prices will not come down, transportation cost will not come down, and the overall effect is that food prices will go up”.

The prices of petroleum products often times impact on the delivery of goods and services in the country.

In the first half of 2021, prices of tomatoes, plantains and onions have increased significantly in major markets.