Passengers’ concerns noted, but operators cannot run at losses – GRTCC
The Ghana Road Transport Coordinating Council (GRTCC) has described a proposed 30% increase in transport fares as excessive but acknowledged that some level of adjustment may be necessary due to rising fuel prices. General Secretary of the council, Emmanuel Ohene Yeboah, said based on the council’s pricing consideratio...
The Ghana Road Transport Coordinating Council (GRTCC) has described a proposed 30% increase in transport fares as excessive but acknowledged that some level of adjustment may be necessary due to rising fuel prices.
General Secretary of the council, Emmanuel Ohene Yeboah, said based on the council’s pricing considerations, the current increase in fuel prices could justify an adjustment of about 20% or slightly higher.
Speaking on the Asaase Breakfast Show on Tuesday (28 July), he said a 30% increase proposed by some transport operators was beyond what the council considers reasonable.
“If we were to apply our own standards as it were, maybe we would be calling for about 20% or a little more,” he said.
“As much as 30%, I don’t think it is quite reasonable, but I think the time is due for some level of interest.”
TheGhana Private Road Transport Union (GPRTU) has warned that transport fares could rise by 30% if the government fails to intervene to cushion operators against rising fuel prices.
Yeboah explained that fuel remains the major factor influencing transport fare adjustments, with the council using a threshold system to determine when fares should be reviewed.
“Fuel is dominant. In fact, fuel is the only item that keeps changing the dynamics,” he said.
He said under the existing arrangement, a 10% increase in fuel prices from the previous adjustment triggers discussions on possible fare reviews.
“While the fuel is increased about the previous increase, the people who got dispatched for increase the same way if it drops by 10%, we have to look for a way of reducing it,” he said.
Addressing concerns from passengers that fares rise faster when fuel prices increase but do not immediately fall when prices decline, Yeboah said transport operators also consider the sustainability of their businesses.
He said operators could not continue charging fares below the cost of running their vehicles.
“We are also passengers, and nobody wants to lose. The only commodity that we have is the passenger,” he said.
Yeboah added that the council would engage transport operators to understand the basis of the proposed 30% increase before any decision is taken.