World Bank reported that cities in developing countries often spend between 15 to 25% of their annual expenditure on the transport system. It is also common to find that between 5 to 10% of urban household income in developing countries.
Public transport in developing countries is crucial for the urban poor individual who has to rely on walking, cycling, and road-based public transport to meet most of their travel needs is spent on transportation, and in some cases, the percentage is 15 or more. The ability to move around is part of daily activities and such an essential component of the human life of every individual.
The demand for public transport is high in the country, but the government has failed to revamp the transport sector. There has been a decline in the government-owned transport system and an increasing number of private vehicles, resulting in more congestion in urban centres. Therefore, public transport operators have monopolized the sector. Joy Business reported yesterday that the price of a litre of diesel will rise by 11.14%, while petrol and diesel prices will also go up by 13%. Following this development, the Ghana Private Road Transport Union has said that it is currently sensitizing citizens that there will be a hike in the price of transportation.
Determiners of Transportation Fare
Mr. Richard Yaw Amankwah, Deputy General Secretary in Charge of Operations, GPRTU, told the Ghana News Agency that the Union has bout seven components that determine the prices of transportation. But I think it is not the case anymore because anytime there is an increment in the cost of petrol and diesel, the cost of transportation in the country goes high.
Cost of spare parts, VAT, Drivers’ Licenses, distance, and a few other things are all determiners of transportation cost. It is indeed true that the transportation sector is most exposed to fuel prices as it is the essential commodity for their business, but transport operators in the country often increase prices without proper regulation. The above often results in confusion and disorder in public transport.
Uncertainty in Transportation Fares Adjustment in our Cities
In May transportation fares were increased by 20% in the country. On that faithful day, transportation was increased GPRTU told the public to disregard the price increment but checks confirmed that transport operators did not do the same. In February, owners of transport vehicles in Ghana announced a 30% increase in the cost of transportation but the GPRTU urged the public to disregard the new fare.
There were several consultations with the government and a brouhaha between the public and transport operators, finally, the fare was increased by 20%. When all components necessitate the increment of transportation fares, transport operators increase the amount they like. Although prices of things necessitate for some increment but some places the price of fare are too high.
The Way Forward
Arguable situations on the ground necessitate some of these increments the government, transport operators, and leaders should come together and decide the amount that should be added rather than doing it percentage-wise which most drivers and mates take advantage of the ordinary Ghanaian. Although transport operators would not adjust the fares if the cost of fuel were moderate, prices per are not the only determiner of price increment.
Distances that do not deserve the amount charged should be checked and reduced. The price of petroleum and diesel has increased exponentially, and transport operators have also increased the prices of fares more than three times this year. The government should accumulate some of the taxes and levies on petrol prices, and transport operators should desist from increasing the cost of transportation anytime fuel prices increase.