The National Association of Sachet and Packaged Water Producers has threatened to halt water production and distribution if the government doesn't stop the rapid decline of the cedi.
The Association claims that while manufacturing costs continue to rise, the association's members' companies are suffering greatly as a result of the ongoing rise in fuel prices and high energy costs.
In a statement released by the association, it said: "It is important to note that packaging alone forms about 60% 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% of the product cost as of the third quarter of last year. Due to the high increase in diesel and other petroleum products, diesel fuel for distributing packaged water to consumer centres now exceeds 25% of the product price. Electricity cost which used to be around 15% of the product price has increased to 20% of the product price as a result of the recent increase in utility tariffs."
"All the above sums up beyond 95% per the last packaged water new prices announced in September 2022 without considering the cost of capital, Salaries, wages, taxes, bank charges, regulatory fees, machine and equipment cost/depreciation/parts replacement, distribution vehicles and its maintenance costs and other overheads."
If the situation worsens, the group warns that its members may be obliged to raise their prices.
"The leadership of the packaged water industry will continue to update the public on the challenges, and if the government did not attend to the call by a week from today, we will have no option but to pass on the cost to the public and possible shutdown of production and distribution for a week across the country."