A bag of sachet water will now sell at GH¢1.20 after the Ghana National Association of Sachet Water Producers announced an upward adjustment of the price of sachet water which will take effect from August 1, 2010.

Previously, it sold at GH80p. A sachet of water is expected to sell at Gh8p though market watchers have argued that it could go for GH10p because of the non-usage of the GH1p coin.

The association said it has become necessary due to increases in electricity and water tariffs by 89 and 36 percent respectively, which took effect from June 1, 2010.

Confirming the increment, Loenard Quarshie, a sachet water producer told BUSINESS GUIDE that the cost of production has severely shot up ever since the increment.

This, he stated, was due to the fact that they mostly use electricity and water, adding that the new tariffs would definitely affect their operations.

“Considering the fact that our suppliers have also increased the price of rubber materials, coupled with the increment in tariffs, we have no choice than to increase the prices of the product,” he emphasised.

He indicated that in May 2010 he paid a total of GH¢ 550 as electricity bills.

“We are really suffering, so consumers should bear with us, and understand that it is not a deliberate attempt to take undue advantage of them,” he lamented.

Asked whether traders would not round up the figure from GH¢ 8p to GH¢ 10p, Mr. Quarshie stated that the Gh1p coins are still in use and that consumers must demand their change anytime they buy sachet water.

The Association of Ghana Industries (AGI) has however stated categorically that the increment is unacceptable since it would increase the cost of production of manufacturing companies.

The Industrial and Commercial Workers’ Union (ICU) Ghana also noted that the increment would force several companies to sack workers.

It has therefore called on the Public Utilities Regulatory Commission (PURC) and the government to drastically review the new tariffs or it would advise itself.

According to the union, the real increases of electricity and water ranges from 198-235 percent in the manufacturing sector, rubbishing the 89 and 36 percent increase in electricity and water that was announced by the PURC in May.

By Esther Awuah