As commercial transport operators agitate for transport fare increase, the Chief Executive Officer of the Chamber of Bulk Oil Distributors (CBOD), Senyo Hosi has argued that there is no justification for an increase in transport fare now.
Mr. Hosi explained that with the current 20 percent increase in prices of petroleum products, the new price for diesel, which is 2.64 percent is lower now than it was in June 2015.
He stressed that in the same vein, the price of premium petrol sells 14 percent lower now than it did in June 2015 when the last upward review of transport fares was effected.
“As observed above, current petroleum prices are lower than they were during the last transport fare increase in June 2015,” he said.
He was of the view that majority of Ghanaians who use public transport did not benefit from the last price decrease because commercial transport operators refused to reduce transport fares to commensurate with the lower prices at the pump.
“Using the price increase in petroleum products cannot justify an increase in fares, if the commercial operators argue with other inputs, such as insurance hikes and spare parts, then we can’t complain”, he said.
Currently, The Ghana Private Road Transport Union (GPRTU) is locked in negotiations with government over intended fare increases; following the announcement of price increases of petroleum products.
Fuel Prices fell averagely by more than 33.3 percent between June 2015 and November 2015.
According to Mr. Hosi, “it is only those who operate generators, private car owners, transport operators and manufacturers who power their own plants with fuel that benefitted from the current downward trend in global crude prices.
He maintained that the windfall to commercial transport operators was huge and that was to the detriment of majority of the populace who use the commercial transports to commute.
He therefore urged government to use the tax windfalls to establish a strong state-owned public transport system which would be highly subsidized for commuters.
“That way, there would be competition and the private transport operators would be forced to bring down their fares,” he argued.
Checks have revealed that, private transport operators have been pestering government for approval to increase fares.
A statement issued by the Road Transport Operators said a meeting with government over the matter had been adjourned to this week since an agreement was not reached.
The statement, signed by Issah Musah Khaleepha, General Secretary of the Ghana Private Roads Transport Union, and Andrew Kwesi Kwakye, Acting General Secretary of the Ghana Road Transport Coordinating Council, asked their members to keep charging the existing fares till agreement was reached with government.
Meanwhile, public sector labor unions have also started agitating for a 50 percent wage increase in the face of the current petroleum price increases which they fear might result in transport fare hikes.
