FUEL PRICE ADJUSTMENTS AND GROWTH OF SMES IN THE NEW JUABEN MUNICIPALITY, GHANA (Published)
Fuel as a major energy consumed has its price been unpredictable. Due to this unpredictability, policy makers always try to adjust its price to meet the prevailing world market prices. This study sought to evaluate fuel price adjustments and growth of SMEs in the New Juaben Municipality of Ghana. The specific objectives were to: find out whether fuel price adjustment affects SMEs negatively or positively, and explain the effect of fuel price adjustment on employment, turnover and output of SMEs in the New Juaben Municipality. This study was a social survey with a sample size of 204 and a purposive sampling was used to illicit information from respondents in which quantitative and qualitative analysis were undertaken. The results of the study showed that, increases in fuel price due fuel price adjustment result in increases in transportation costs, raw material costs, capital costs and other costs but have a negative relationship with consumer real income. In addition, increases in fuel price constrained the growth of SMEs. The study recommended that, government should take steps to subsidize the fuel costs of SMEs to enhance their growth which could lead to increase in employment. SMEs should be provided with managerial training to enhance their understanding of their activities
Keywords: Fuel Price Adjustments, Ghana, Growth, New Juaben Municipality, SMEs