Business

‘Pure water’ to sell at GHp60 from Oct. 31

The National Association of Sachet and Packaged Water Producers (NASPAWAP) has reviewed the prices of bottled and sachet water across the country.

This follows a release of new prices by the Ghana Plastic Manufacturers Association (GPMA) for plastic films and preforms used in sachet and bottled water packaging.

A statement issued by the Association announcing the price review for bottled and sachet water said: “On the 24 October 2022, a ton of sachet film was increased from GHS25,000 to GHS36,000 representing 44 per cent rise, same on preforms.”

It noted: “Diesel fuel price is about GHS20.00 per litre at the pumps as at Wednesday, 26 October. This means producers’ working capital had dwindled by about 45 per cent within 7 days since the NEC issued the distress call to government.”

This, the Association further noted has led to its recommended price reviews for products.

It recommended that “iced bottle water, 500ml be retailed at GHS2.50 and iced bottle water 750ml or medium size be retailed at GHS 3.50, iced bottle water 1.5L be retailed at GHS5.00.”

The Association also recommended that the “iced sachet water should be retailed at 60 pesewas.

Thus, a bag of sachet water (500ml x 30 sachets) will now sell at GHS10.00 from the retail trucks as ex truck price.”

However, “in the open market, consumers may expect to purchase a bag of sachet water between GHS12.00 and GHS15.00 depending on the shop location.”

All new prices take effect from Monday, 31 October 2022.

NASPAWAP last week, threatened to shut down production, over the rising price of fuel and the falling cedi.

According to the Association, the cost of fuel and the continuous fall of the Ghana cedi against the dollar, is taking a toll on the packaged water industry.

A statement issued by the Association and signed by its President Magnus Nunoo said: “The packaged water industry relies heavily on imported plastic pallets/granules used in the manufacture of the Polythene films and pet bottle preforms, that are used to package the treated water for consumers.

“It is important to note that Packaging alone forms about 60 per cent of the production cost for sachet and bottled water. Diesel fuel used for distributing the packaged water to market centres for consumers was around 15 per cent of the product cost as at the third quarter of last year.”

It indicated that: “Due to high increase of diesel and other petroleum products, diesel fuel for distributing packaged water to consumer centres now exceeds 25 per cent of the product price,” while, “electricity cost which used to be around 15 per cent of the product price has increased to 20 per cent of the product price as a result of the recent increase in utility tariffs.”

The Association therefore called on government to take urgent steps to remedy the situation.

The Association also gave government a week to address their concerns else it “will have no option than to pass on the cost to the public and possible shutdown of production and distribution for a week across the country.”

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