SPARE PARTS DEALERS SLASH PRICES AS CEDI GAINS STRENGTH

The Abossey Okai Spare Parts Dealers Association has instructed its members to immediately lower the prices of auto parts in response to the recent appreciation of the Ghanaian cedi against the US dollar.

This directive, issued on May 18, 2025, came after an emergency executive meeting held in Accra. The Association emphasized that many traders had previously increased their prices during the period when the cedi depreciated sharply, crossing the GH₵15 to US$1 mark. With the local currency now stabilizing around GH₵12.32 per US$1 — as reported by the Bank of Ghana on May 16 — the association believes it is only fair that prices are adjusted downward to reflect the current market realities.

The leadership has also mandated shop stewards to monitor compliance among dealers. Those who fail to revise their prices risk facing internal disciplinary measures. According to the new guidelines, prices for commonly purchased items such as brake pads, oil filters, and lubricants should drop by 10–15%, while costlier components like engines and gearboxes are expected to see reductions of up to 20%.

This price reduction comes on the back of several economic developments contributing to the cedi’s recovery:

• Increased foreign exchange inflows from the Bank of Ghana’s gold-for-oil and gold-for-reserves initiatives.
• Cocoa export earnings and inflows from IMF-backed programs.
• A relatively strong monetary policy stance, with the interest rate held at 29%, encouraging foreign investment.
• Reduced import activity, including lower demand for vehicle and spare parts, which has helped ease pressure on the cedi.

For consumers, this is expected to bring some relief. Indicative retail adjustments shared by major distributors include:

• Front brake pads for a Toyota Corolla reducing from GH₵950 to around GH₵800.
• A 4-litre bottle of 5W-30 engine oil dropping from GH₵430 to GH₵380.
• A used starter motor falling from GH₵2,800 to GH₵2,300.

Commercial drivers’ unions, meanwhile, have welcomed the move but stated that they will monitor price trends over the next week before considering any reduction in transport fares. Industry practice typically requires a sustained 5% decrease in operational costs before such fare adjustments are made.

Looking ahead, traders and consumers alike are watching for additional developments, including further foreign exchange auctions and the government’s mid-year budget review, both of which could influence the pricing outlook for imported goods.