Some spare parts dealers in Abossey Okai are resisting calls to reduce their prices despite the recent appreciation of the Ghanaian cedi against the U.S. dollar. The dealers argue that their current stock was purchased when the exchange rate was significantly higher, making it economically unfeasible to lower prices at this time. This position contrasts with a directive from the Abossey Okai Spare Parts Dealers Association, which has urged its members to adjust prices in accordance with the cedi’s recovery.
In an interview with Citi Business News, several dealers indicated that price reductions will only be feasible once they can restock at the current, more favorable exchange rates. Francis Appiagyei, a spare parts dealer at Abossey Okai, explained, “At the moment, price reductions aren’t possible because we ordered goods at a higher exchange rate than what we see now. We have to sell at that price, and once we run out of stock and place new orders at the lower exchange rate, prices will definitely come down.”
Yaw Ansong, another dealer, echoed the sentiment. “Unless I sell the one which I already ordered and finish before I can reduce the [price] of the goods. I haven’t ordered new one so I can’t reduce the price. If I reduce the price I am going to lose my job,” he stated. For others, price reductions may come—but only if the cedi’s performance remains stable over time. “We have come to understand that the dollar is down and the cedi is also going up so we are going to do what they say but not now. We will go down on prices when we see the dollar is still stable at where it is,” Eric Osei Danso explained.
By: Daniel Sackitey
