On the 17th of September 2018, fuel prices in most regions in Ghana had hit a record high of GHC 5 per liter. Some filling station even went as high as GHC 5.10. This has attracted a lot of public outrage and many have been bold about their displeasure with the price increase in the latest news in Ghana.
On the 17th of September 2018, fuel prices in most regions in Ghana had hit a record high of GHC 5 per liter. Some filling station even went as high as GHC 5.10. This has attracted a lot of public outrage and many have been bold about their displeasure with the price increase in the latest news in Ghana. This increase in fuel prices is going to put a huge dent on the wallets of many Ghanaians. It is however going to have even more far reaching consequences than one may see at first glance. YEN latest news has compiled a list of four different ways the increase in fuel prices will affect your life.
Transport costs will go up
The first and most obvious impact will be felt on the cost of transport. Your daily commute is ure to become more expensive as fares go up so that public transport operators maintain their profit margins. If you own a car you will be forced to spend more money on fuel than before and the cost of transporting various goods across the country will also go up to offset the pinch at the pup. The increase in commodity transport costs leads to an even bigger dent in your pockets.
Commodity Prices will shoot
The increase in costs of transporting a product from the producer to the consumer will increase and businesses are guaranteed to pass this burden to the consumers. The cost of transporting raw materials for production from the source to the point of manufacture or assembly will also go up and the consumer is at the receiving end of the hammer yet again. Supply chains may be optimized to offset these increases so that brands can maintain their market share or consumers will be forced to see out cheaper alternatives. It is likely that some brands will use this opportunity to gain an edge over their competitors by keeping their old prices and shouldering the cost themselves.
Utility Prices will increase
The one utility that society has become hooked on and cannot really go back on its usage is electricity. The problem with electricity supply in Ghana and most of the African continent really is the inconsistent supply. This supply, in order to stay stable has to be supplemented by diesel generated electricity. The cost of these standby diesel generators fuel consumption will go up and this in turn means the cost of electricity will go up. You may be forced to pay even higher bill for the power you use in your home.
Standards of living will go down
In Ghana news today, you will find no shortage of people struggling to make a descent living out of whatever income they get. This is about to become an even more challenging task. Salaries are not going to increase despite the increasing costs of almost everything you depend on daily. The result is that Ghanaians may be forced to settle for lower standards of living to be able to survive. These effects will continue causing more changes like a line of dominos.