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General News Sat, 17 Dec 2016

Prices not reduced because of Akufo-Addo – Spare parts dealers -

Some spare parts dealers at Abossey Okai in Accra, have denied reports that their decision to reduce prices of their products ahead of the Christmas season, was done in solidarity with the newly elected President, Nana Akufo-Addo.

The leadership of the spare part dealers say the recent decrease in prices by some traders, is as a result of a regular Christmas discount it gives to customers.

Speaking on Citi Eyewitness News on Friday, Mr. Siaw Ampadu, a leader of the traders at Abossey Okai said, the reduction in prices was not due to political reasons; but is to afford customers the opportunity to buy their products at reduced cost.

“It is true that we have cut our prices down but it is not due to political reasons. Since 2007, we find ways to cut down on our prices so that our customers can purchase our products. Being in the Christmas time, people travel a lot and if the prices are high, they cannot buy from us so we try to cut our prices every December and we started since 2007,” he said.

There are speculations the dealers reduced their prices to support the newly-elected government after it had sabotaged the incumbent National Democratic Congress by selling at high prices. But according to Mr. Ampadu, “Abossey Okai is not doing politics with this. It is not because of Nana Akufo-Addo we are doing this.”

He insisted that, the move was genuine in spite of economic challenges such as high import duties, high interest rates and high exchange rate that traders go through.

He said there was no definite percentage of reduction being offered to customers, however the traders offered discounts that made economic sense.

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‘Reasons for price reduction strange – John Gatsi

Meanwhile, an economic analyst, John Gatsi, has said it is strange to believe the claims of the leadership of the spare part dealers.

According to him, some traders are undertaking the action due to the election of Nana Akufo-Addo as President of Ghana at the just ended elections, saying this was done in the year 2000, when then President Kufuor was elected.

He noted that, it may be possible for an opposition party to use the traders as a tool against the incumbent government, by urging them to increase prices of their products and accuse the government for the high costs.

He however said one could not easily connect the current reduction to the outcome of the elections, since this is happening after the elections.

Source: citifmonline
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