Accra: The Ghana Private Road Transport Union (GPRTU) has announced that there will be no immediate reduction in transport fares, despite the government's intervention to reduce diesel margins by GHS2 per litre. The Union cited that current diesel prices and operating costs remain above the threshold necessary to justify a fare reduction.
According to Ghana News Agency, Mr. Samuel Amoah, Deputy Public Relations Officer of the GPRTU, explained in an interview that plans to increase transport fares by 30 percent were suspended following discussions with the Ministry of Transport. The Ministry had engaged the Union on measures intended to reduce fuel prices, which led to the government's intervention.
'We were proposing a 30 percent increment, but then we went to the Transport Ministry and were engaged. They told us to hold on because the government was trying to put in some measures that would bring the fuel price down,' Mr. Amoah stated. The Union was not surprised by President John Dramani Mahama's announcement of the reduction in diesel margins.
Mr. Amoah highlighted that transport fares were last reduced by 15 percent when diesel prices were approximately GHS15 per litre. With the current average price standing at about GHS17 per litre after the government's intervention, the Union's percentage threshold suggests that fares should have increased rather than decreased.
Fuel prices are not the only factor in determining transport fares, according to Mr. Amoah. The Union also considers the cost of spare parts, lubricants, insurance premiums, taxes, vehicle licensing fees, and assembly charges, all of which have seen increases in recent years.
The GPRTU and the government have agreed to monitor developments closely before making any decisions on transport fares. The diesel margin reduction is set to be in place for one month, while fuel prices will continue to be reviewed bi-monthly under the current petroleum pricing regime.
Transport operators have welcomed the intervention but remain concerned about declining daily earnings after accounting for fuel and other operating expenses. The Union will continue to track fuel prices and economic indicators, adjusting transport fares only when the required percentage threshold is met.
Mr. Amoah urged the public to appreciate the government's intervention, noting that it prevented a potential 30 percent increase in transport fares. Future reductions in fares will depend on sustained lower fuel prices and a decrease in other operating costs.