Business News Tue, 18 Sep 2018

Transport fares likely to go up – Driver Unions hint

Some driver unions have hinted of a possible increase in transport fares following Monday’s increment in fuel prices.

Petrol and diesel are currently selling above GH? 5.00 at most fuel pumps.

This is as a result of Bulk Oil Distribution Companies, (BDCs) increasing their prices to the Oil Marketing Companies, OMCs, by an average of 5%.

Previously, the BDCs were selling diesel to the OMCs at GH?3.10 per litre but currently selling to them at GH? 3.24 translating into a 4.5% increment.

For petrol, the BDCs were previously selling to the OMCs for GH? 2.95 but currently offering it to the OMCs at GH? 3.12 cedis, which is a 5.7 percentage point increase.

Petroleum outlets have responded by increasing their prices by 3%.

There have been a number of increases in fuel prices from the beginning of the year till date.

Government has come under severe criticism for failing to ensure that fuel prices are stabilised.

Organisations such as the Chamber of Petroleum Consumers (COPEC) have also come heavy on government for not thinking outside the box when addressing the impact of oil prices on citizens.

According to the CEO of COPEC, Duncan Amoah, government’s decision to maintain the Special Petroleum Tax in the price build is insensitive.

It is on the back of these increases and developments that some driver unions are giving hints of a possible increase in transport fares.

A joint statement signed by the Chairman of Concerned Drivers Association,David Agboada, and Vice Chairman of True Drivers Union, Yaw Barimah, noted that there are plans to increase transport fares.

“The Above mentioned Drivers Unions wish to inform the media and the general public that there will be a possible increase on transport fares in few days time,” the statement indicated.

They however cautioned their members not to take any action towards increasing transport fares, until they are given the go ahead to do so.
Source: 3news.com
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