Sachet Water Price Increases: To Sell At 60p, One Bag To Sell At GH¢15 From October 31
- Apart from food and fuel prices, water prices will also shoot up significantly from Monday, October 31
- A sachet water will now sell for 60p while a bag, made of 30 500ml sachets of water, will sell for between GH¢12 and GH¢15
- The association of packaged water producers have blamed the increases on skyrocketing inflation, free fall of the cedi against the dollar and rise in petrol and diesel prices which have affected the cost of production
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One sachet water, known popularly as pure water, will now sell for 60 pesewas while a bag will now sell for up to GH¢15 from Monday, October 31, 2022.
This was communicated in a press release issued by the National Association of Sachet and Packaged Water Producers (NASPAWAP) on Thursday, October 27.
The association explained in the release that the increases have been triggered by rising cost of production, especially fuel and plastic.
Source: UGC
"It is recommended that iced bottled water, 500ml, be retailed at GH¢2.50 and iced bottles water 750ml or medium size, be retailed at GH¢3.50; iced bottle water 1.5L be retailed at GH¢5.00.
"It is also recommended that the iced sachet water should be retailed at 60 pesewas.
"A bag of sachet water (500mlx 30 sachets) will now sell at GH¢10.00 from the retail trucks as ex truck price. It is worth noting that the retail price of a bag of sachet water and packs of bottled water from mini shops will be determined by their retail associations, using other determinants such as rent and overheads that feeds into the final retail price.
However, in the open market, consumers may expect to purchase a bag of sachet water between GH¢12.00 and GH¢15.00 depending on the shop location."
Justifying the upward price reviews, the association explained that its National Executive Committee issued a distressed statement about the packaged water industry that has been affected heavily by the continuous increases in input cost due to the free fall of the Ghana Cedi against the major international currencies.
"Shortly after our press statement, the Ghana Plastic Manufacturers Association (GPMA) released new prices of plastic films and preforms used in sachet and bottled water packaging. On the 24'h October, 2022, a ton of sachet film was increased from GH025,000.00 to GH036,000.00 representing 44% rise, same on preforms.
"Diesel fuel price is about GH¢20.00 per liter at the pumps as at Wednesday 26th October. This means producers' working capital had dwindled by about 45% within 7 days since the NEC issued the distress call to government," the statement said.
The association said a result, most packaged water producers are currently unable to purchase materials to the expected levels while other are not operating as they cannot afford the losses of 45% on their working capital.
"Giving the urgency of the situation, an emergency stake holder engagement was called on the 26th October, 2022, to review the effect of the continuous increases of fuel slf films preforms and vehicle spare parts, taking into consideration the need to maintain the production of quality packaged water to the citizens."
Fuel Prices Shoot Up: Prices Increased From GH¢13 to GH¢14 As Expert Predicts Imminent Shortage
Meanwhile, YEN.com.gh reported in a separate story that fuel prices have increased twice in October 2022, threatening to increase food prices and transport fares in the coming days.
The second increase in the price of petrol and diesel has happened days before the second pricing window on October 30.
According energy expert Duncan Amoah a third increase in petrol and diesel prices will happen on October 30.
He also said a shortage of the product is looming as BDCs struggle to get dollars to import the products.
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Source: YEN.com.gh
