Transport Fares To Go Up

Leadership of the Ghana Private Road Transport Union (GPRTU) would today, Friday August 2, meet with stakeholders within the commercial public transport sector to determine the percentage at which transport fares should be increased across the country.

The increment has been caused by an announcement by Finance Minister Ken Ofori-Atta that there has been an increment in the Energy Sector Levy effective today.

According to Ken Ofori-Atta, Government proposes to increase the Energy Sector Levies by 20 pesewas per litre for petrol and diesel and 8 pesewas per kg of LPG, so as to increase the inflows to enable Government Issue additional bonds to pay down Ghana’s energy sector debt obligations

Public transport operators, after the announcement of an increase in the price of petrol and diesel, are contemplating passing on the additional cost passengers.

This would impliedly increase the cost of food and essential commodities.

GPRTU however says the Union members do not have a choice because they have to remain in business and an increase in the cost of petrol and diesel narrows down their profit margin unless the additional cost is passed on to passengers.

National Vice Chairman of GPRTU, Robert Sarbah, spoke to Onua FM: “We shall add the previous increment [to the new one] and if it is up to 10 percent, we shall increase lorry fares which will affect the economy. From Friday, we shall start working on it.

“We all have to meet because it is not only GPRTU that determines transport fares. We do it with other stakeholders”, Robert Sarbah added.

The GPRTU Vice Chairman explained that the Union has to take the decision with other stakeholders within the public commercial transport sector.

Going by the announcement by the Finance Minister last Thursday, petrol and diesel are to go up by roughly GH¢1.00 per gallon. The price of LPG is also expected to increase by about ¢1.40.

PUBLIC NOT HAPPPY

Government has received sustained public criticisms since Ken Ofori-Atta made the announcement in Parliament while presenting the 2019 mid-year budget review on Monday.

The general complain has been that an increase in the cost of fuel and diesel most often leads to an increase in the cost of transport fares which has an automatic carry-on effect on the cost of food and essential commodities.