The Ghana Private Road Transport Union (GPRTU) and the Ghana Road Transport Coordinating Council (GRTCC), are expected to increase transport fares by some 10% later this week. The increase in transport fares will be effected after successfully obtaining the approval of the Transport Minister.
On Wednesday, June 22nd, 2022, the operators and Transport Minister, Kwaku Ofori Asiamah, are expected to meet at a crunch meeting. However, there was some consensus that the fares should be reconsidered at a meeting that took place last Friday, June 17, 2022, between the two organizations and the transport minister. However, a final agreement on the margin of increase for petroleum products could be obtained. The gathering also decided that it was time to review some taxes on fuel. In the just closed pricing window of June 15, 2022, fuel prices on the local market climbed by an average of almost 4%.
Following the depreciation of the cedi and an increase in global prices, the Institute for Energy Security predicted yet another large increase in the cost of various items. However, the dominant player in the market, GOIL, over the weekend raised the cost of petroleum products at the pumps. A litre of petrol is going for ¢10.99 which tallies with the current market condition. However, diesel is selling for ¢13.39 pesewas.
It is evident from the industry’s pricing formula that the majority of the oil market companies have only covered a small portion of the cost. Therefore, prices ought to have been higher than they are right now.
Though the possible increase in transport fares is going to severely affect the everyday Ghanaians who are already faced with the high cost of living in the country, it has become somewhat necessary for the drivers to increase transport fares as they are also badly hit by the recent hike in fuel prices; they need to sustain their businesses to enable them to take care of their families.
The government must put in stringent measures to alleviate the economic hardship we are currently facing as a nation. When costs are subsidized, the standard of living will improve which will, in turn, lessen the economic hardship in the country.