Wholesalers and retailers of steel products, including iron rods, have expressed disgust over the failure of manufacturers of steel to cut the prices of their products, as the government has reduced electricity by 50%.
The wholesalers and retailers have described as unacceptable, selfish and unpatriotic, the increase in prices of steel products by the seven manufacturing companies operating in Ghana.
The companies, B5 plus, Ferro Fabriks, United Steel, Tema Steel, Sentuo Steel, Fabrimetal and Rider Steel Company Limited, have, in a communication to wholesalers and retailers, indicated that an adjustment in the prices of Mild Steel had already been effected.
This latest increment, however, comes on the back of the President’s announcement of a 50% reduction in electricity cost for all businesses and individuals above the poverty line, among measures to cushion the country against the impact of the Coronavirus pandemic.
This reporter understands that the increment by the seven companies has been happening on a monthly basis since November 2019.
An intercepted message sent to all wholesalers reads:
Please find attached the following as Mild Steel Rods price schedule with effect from 1st March, 2020.
Mild Steel, 10, 11, 5, 12, 14, 18 millimeters, now sell at 3,200 cedis instead of the 3,000 cedis. Also 20 millimeters now sells 3,280 instead of 2,900 cedis. Regards.
Similar messages were sent in November, December, January and February, culminating in an almost 100 percent increment in steel products.
Further checks have revealed the companies, which enjoy exclusive manufacturing of the iron rods and other steel products because of the government’s ban on the importation of steel has created an artificial shortage of the products, resulting in the companies forcing the wholesalers and retailers to buy at their prices.
A source in the steel wholesaling business says they are helpless because government officials aware of what he described as a day light robbery and exploitation by the cartel formed by the manufacturers have refused to act on their concerns.
“We think that the seven companies are unpatriotic, selfish and greedy, because how do you explain this. Government has reduced cost of electricity, which has brought down their cost of production, which is a major key input, but instead, they have decided to increase prices and people cannot afford, and we have no one to speak for us,” the source said.
“Worst still, they have created an artificial shortage, so we have no option than to buy from them, because we cannot import from China and elsewhere, which is far cheaper because of the government ban. I think the President, the Minister for Trade should look into this, because this is cheating, especially in this time where everyone is sacrificing to help the country out of this mess to the economy the Coronavirus has created,” he intimated.
When reached out for a response, the managers of some of the companies refused to comment.
The post Steel coys increase prices of products despite 50% power subsidy appeared first on The Chronicle Online.
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