Cabinet rejects price-control mechanism - Gabby Otchere-Darko hints

Gabby suggests govt considered introducing prices controls

History shows price control was a disaster in Ghana – Gabby

Year-on-year inflation hits 23.6 percent

New Patriotic Party stalwart, Gabby Asare Otchere-Darko, has said that the government considered introducing price control mechanisms to stop the recent increases in prices of goods and services in the

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Otchere-Darko, however, indicated that President Nana Addo Dankwa Akufo-Addo and his cabinet opted not to introduce the price control system in Ghana after careful consideration.

In a tweet shared on Monday, May 30, 2022, the NPP stalwart added that the eras of price control mechanisms in Ghana’s history resulted in hardships for a lot of Ghanaians.

“Should Ghana re-introduce price controls in an attempt to curb rising costs of goods and services? Cabinet, I am told, has so far rejected that option. History tells us that price controls have been unmitigated disaster in Ghana. But, it may sound sexy again as inflation reigns,” the tweet Gabby shared read.

Year-on-year inflation at the beginning of 2022 was around 12.7 percent; now, the inflation rate for April, which did not account for the recent increase in transport fares by 20 percent, is 23.6 percent. The prices of staple foods such as maize, cassava, beans, and millet have doubled, leading to delicacies like banku and kenkey, previously sold at GH¢ 1, now selling at GH¢2 upwards.

Prices of fuel products have increased more than five times. In January 2022, the cost of fuel increased from GH¢6.90 to GH¢7.42. In February, the prices increased from GH¢7.42 to GH¢7.99. In March, the prices increased two times, first to GH¢8.29 and to GH¢8.49. From GH¢8.49 it increased to over GH¢ 9, now diesel is selling at GH¢ 11.24 and petrol at GH¢9.70.

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Read the MP's tweet below:

Should Ghana re-introduce price controls in an attempt to curb rising costs of goods and services? Cabinet, I am told, has so far rejected that option. History tells us that price controls have been unmitigated disaster in Ghana. But, it may sound sexy again as inflation reigns.

— Gabby Otchere-Darko (@GabbyDarko) May 30, 2022