The Ghana Private Road Transport Union (GPRTU) has denied claims that it has raised transportation fares by 15%, claiming that the rise would be too costly for Ghanaians.
According to the union, a consultant was hired to perform a market survey into the pricing of the components used in the transportation industry, and a 15% increase was recommended, but it was not accepted.
Mr Godfred Abulbire, General Secretary of the GPRTU, told the Ghana News Agency that the Union cannot adopt the 15% increase demand because it will jeopardize their business.
He claimed that the transportation industry had taken a fall since the last fee increase last month, and that a greater increase could sink their firm in the wake of the apparent economic downturn.
Mr Abulbire stated that the GPRTU was still in talks with relevant stakeholders and that the new increase in transportation fees would not exceed 10%.
“Whoever claims that we have increased fares by 25% is merely instilling fear and worry in the public. If we do so, we will jeopardize our business because many people, particularly students, will suffer as a result.
“For example, in the Northern Region, I can tell you that people are not traveling because they cannot afford the fares.” So you can guess what will happen if fares increase by more than 10%,” he remarked.
Mr Abulbire stated that the GPRTU would meet with Mr Kwaku Ofori Asiamah, Minister of Transport, to examine the suggested tariff and arrive at a figure that would benefit both the public and the transportation industry.
He asked the public to be calm and urged transportation companies to refrain from raising fares.
The GPRTU’s decision to raise transportation rates follows a dramatic hike in gasoline and diesel prices at the pumps on Thursday, June 16, 2022.
Petrol prices have increased by nearly 10% to an average of GHS 10.95 per litre, while diesel prices have increased by roughly 14% to an average of GHS 13.50 per litre in the Second June 2022 Pricing Window.
The “severe surge” in fuel costs, according to the Institute for Energy Security (IES), is due to the continued devaluation of the Cedi against the US Dollar, as well as an increase in international market prices for gasoline and diesel.
The cedi depreciated by 0.86 percent in the most recent pricing window (June 1 to 15, 2022), according to the Institute, while the international market price for gasoline and diesel increased by 14.81 percent and 17.67 percent, respectively.
Last month, transportation fares increased by 20%. Petrol and diesel were selling at national averages of GHS 9.41 and GHS 11.12 a litre on May 9, 2022, when the new fares went into effect.