The National Petroleum Authority (NPA) says a planned increase in transport fares by the Ghana Private Road Transport Union (GPRTU) has been put on hold following engagements between government and transport operators.
NPA Chief Executive Godwin Edudzi Tamakloe said the decision followed discussions aimed at preventing higher fuel prices from immediately translating into increased transport fares.
Speaking on Joy News’ PM Express Business Edition on Thursday, Mr Tamakloe said he was “greatly worried” about the potential impact of higher transport fares on households and the wider economy.
Also read: Annoh-Dompreh warns gov’t against using power to target political opponents
The Minister for Transport, he said, has been engaging transport operators to find ways of managing the rising cost pressures confronting the sector.
“I’m greatly worried. Greatly worried in a sense that together with the Minister for Transport, we’ve been engaging the transport operators,” he said.
According to Mr Tamakloe, transport operators face several major expenses, including vehicle maintenance, spare parts, fuel, wages and insurance.
However, he said fuel has become the most significant source of new cost pressure following recent increases in petroleum prices.
“What has become impactful now has to do with the fuel price,” he said.
Mr Tamakloe explained that government measures, including relative stability in the cedi, have helped absorb some potential cost increases associated with foreign exchange.
He added that the government has also been taking steps to cushion transport operators from the impact of rising fuel prices.
“The cedi stability has absorbed potential cost for you from the forex end. That’s government’s intervention,” he said.
The NPA boss said the discussions with transport operators had resulted in an understanding that both sides needed to share the burden of rising costs.
“So we have jaw-jawed with the various transport owners that there is a time for us to also bear the share,” he said.
According to him, the engagements have so far helped prevent an immediate nationwide increase in fares.
“And that is why you notice that the attempt to increase the price or increase fares has basically been put on ice,” Mr Tamakloe said.
He praised the leadership of the GPRTU, PROTOA and other transport groups for what he described as constructive engagement with government.
He, however, acknowledged that some operators had already increased fares despite the discussions.
The development comes as transport operators contend with higher fuel costs following recent increases in petroleum prices, raising concerns over the potential effect on commuters and inflation.
Myjoyonline