Business News Tue, 8 Mar 2022

Consumers opting for small engine capacity vehicles due to fuel price hikes – Automobile Dealers

Oil Marketing Companies adjust fuel pricing

Consumers to pay more for imported vehicles from March 2022

Government announces downward review of benchmark value discounts

The Automobile Dealers Union Ghana has said the increasing cost of petroleum products in the country is negatively impacting the sale of high engine capacity vehicles of imported cars.

General Secretary of the Union, Clifford Ansu, said the fuel price hikes, which started the year around GH¢6.65 per litre for petrol and diesel and now selling for GH¢8.29 at various pumps, has led to consumers opting for small engine capacity vehicles.

In an interaction with Citi Business News, Clifford Ansu explained, “Rising fuel prices like we are experiencing affects all businesses. When some people come to our garages to buy cars, they look at the engine capacity, when the capacity is high, they get concerned about how to fuel the vehicle. Currently, a gallon of petrol is around GH¢37 and this is of concern to some. This leads to some opting for cars with smaller engine capacities.”

“Most garages have a mix of cars they sell from 0.8 engine capacity cars all the way to 4.7 and 5.7 capacity cars. And the sale of the latter is being affected,” he added.

Meanwhile, the Automobile Dealers have hinted at a possible increase in the cost of imported vehicles into the country from March this year.

This is due to the government’s downward review of the benchmark values discount on vehicle imports adding that the development will now force members to sell imported vehicles at much higher prices in order to make profit.

“Customers in the system will pay for the price increase because nobody imports something to sell at a loss, we import to sell at a profit. The new revision will lead to cars that cost US$20,000 costing about US$23,000, which will affect the customers,” General Secretary of the Association earlier said.

“We are concerned about the possible price increases because if we import, and they don’t buy, then we will incur losses. But what can we do? We can’t import and sell at a loss,” Ansu added.
Source: www.ghanaweb.com
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