Transport fares unchanged

Even though the National Petroleum Authority (NPA) recently increased ex-pump prices of petrol and Liquefied Petroleum Gas (LPG) by three percent with diesel earning a two percent increase, transport fares across the country are to remain unchanged.

This is because the less than five percent upward adjustments will not induce any change in transport fares, Acting Greater Accra Regional Chairman of the Ghana Private Road Transport Union (GPRTU), Robert Sabah, indicated.

Noting that the increment is negligible, he mentioned that there is currently a convention which states that when any increment falls below five percent, transport fares should not be revised upwards. He said transport operators are aware of this convention and therefore no commercial driver should act contrary to what has been accepted.

In February, this year, road transport operators revised transport fares upward owing to fuel price increases in the country.

The price of fuel is just one component of the cost of running a vehicle, the others being the cost of spare parts, lubricants, tyres, insurance cover, as well as taxes.

Consumers of petroleum products should be preparing for adjustments in prices and utility tariffs as government considers passing the full cost of the products to consumers.

Cabinet, at a meeting lately, called for more consultations before the move is finally endorsed because government currently absorbs about 52 percent of the price on kerosene and 73 percent on premix fuel.

Should Cabinet give its consent in the near future, fuel prices could be going up every two weeks because government might no longer step in to cushion consumers from the expected hikes, whilst utility tariffs could go up every three months subject to the approval of Public Utility Regulatory Commission (PURC).

Government could also reduce its subsidy on kerosene and pre-mix fuel.