We don’t live in a price regime, so you cannot regulate prices – GUTA to government

Dr. Joseph Obeng, President of the Ghana Union of Traders Association (GUTA), says Ghana is not under a regime that allows anyone to force traders or company owners to sell their items at a regulated price.

Dr. Obeng responded to the Trade and Industry Minister's plan to regulate cement pricing, claiming that we are in a liberal market and that the government cannot compel businesses by regulating prices.

He explained that the government has no investment in the businesses operating in the country and hence has no basis to determine the prices of goods.

Speaking on Frontline on Rainbow Radio 87.5FM, he indicated that there is currently no direct policy to subsidize some of the taxes imposed on businesses for them to reflect in the prices of commodities, including cement.

"It will therefore be difficult for them to be compelled to sell at a regulated price. Traders consider several factors in determining their prices, so asking to regulate their prices will not work. When the cost of cement reduces, it is good, but we cannot compel them to engage in activities that will undermine the rights of business owners.

What the government should do is initiate measures to reduce the cost of doing business so it will have a long-term effect on businesses, which will then lead to a reduction in prices," he argued.

Meanwhile, he has also maintained that if the intention of the government is to help deal with cartels who are engaging in monopolistic activities, then it should communicate that to Ghanaians.

"If there is any regulation meant to break a cartel or monopoly by some players in the market who engage in activities in pricing their goods at certain prices, the government should communicate that well to the people. In America, such activities are deemed criminal offences. If you want to break the activities of the cartel to stop the monopolistic activities, then communicate it well. You should also consult widely on the matter."

But to stress my point, we are not in a price regime where you can regulate prices or compel anyone to sell at a certain price, according to the host Kwabena Agyapong.