‘High fuel prices affecting vehicle maintenance’

Drivers in the Volta regional capital of Ho, particularly the commercial ones, have expressed concern about the increases in fuel prices.

Drivers in the Volta region have for some time been silent about the development.

The Public Relations Officer (PRO) of the Ghana Private Road Transport Union (GPRTU) in the Volta Region, Lawrence Attitoe said the increment in fuel prices had affected the cost of spare parts and other items.

Ghanaians are paying more for fuel at a time when there has been a consistent drastic drop in the price of crude on the international market.

Fuel prices at the pumps have gone up by between 18% and 27% following the passage of the Energy Sector Levy (ESL) by Parliament in December 2015.

The increment took effect from Monday, January 4, 2016, and some fuel stations in the country are selling a gallon of petrol for between GH¢15.00 and GH¢16.00 with diesel selling between GH¢14.20p and GH¢16.00.

The price of LPG has also gone up by about 18 percent price per kilogram. But for the introduction of the levy, the price of diesel should have been reduced by 10%.

Petrol, on the other hand, should have been reduced by some 5.5 percent per liter at the pumps but the levy has led to an increase of at least 27 percent.

Many Ghanaians have questioned the rationale behind the move since there has been a drastic drop in the price of crude oil on the international market.

It emerged that although the Bulk Oil Companies (BDCs) have reduced their prices to comply with the international market, a litany of taxes imposed by government had increased the prices of fuel.

An analysis of the prices by Civil Society Groups, including the Africa Center for Energy Policy, (ACEP) shows that the tax component of the current fuel prices is more that 60%.

Speaking to DAILY GUIDE in Ho, a taxi driver Bright Semebia, said that the fuel price increase has affected their profits and by extension their expenses in maintaining their vehicles.

He added that utility tariffs had worsened the situation.

The GPRTU leaders earlier this week announced a 15% increment in transport fares, but that directive is yet to be implemented in the Volta region.

Lawrence Attitoe, who speaks for the union in the Volta Region, said they are yet to receive an official directive from their leaders at the headquarters.

He also backed calls by the leaders that the recent increment in roadworthy and insurance subscriptions be reversed.

Attitoe, who is popularly known as ‘Awilo,’ assured residents that drivers in the region would comply with official directives.