COPEC backs possible transport fare increase but warns of impact on commuters

Executive Director of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, says workers’ salaries may need to be reviewed alongside any increase in transport fares to cushion commuters from rising living costs. He said that while commercial transport operators are facing increased fuel and maintenance costs, commuters who depend on public transport would ultimately bear the impact of higher fares. He suggested that organised labour, including the Trades Union Congress (TUC), may need to engage government and employers on possible salary adjustments to help workers cope with rising transportation costs.

“The end payer is going to bear the brunt because salaries have not been increased. And those who may, you know, other stakeholders, like those who will be boarding the commercial vehicles, who often have to get their salaries, which hasn’t been increased, will still be losing in this regard. How then do we support those people?

… salaries and incomes may need to be adjusted upwards. That I would leave for the TUC to haggle with.” His comments come amid ongoing discussions between the Ghana Private Road Transport Union (GPRTU) and government over the union’s request for a transport fare adjustment. The GPRTU has been seeking an increase in fares as operators contend with rising operational costs, including fuel.

Mr Amoah said the government’s GH¢2 per litre intervention on diesel had provided some relief but had not stopped the increase in fuel prices. He noted that even with the intervention, some adjustment to transport fares could become necessary to ensure drivers generate enough revenue to maintain their vehicles. According to him, any discussions on transport fare adjustments should therefore also consider workers’ incomes.

Mr Amoah also called for a more scientific approach to determining transport fares, saying fares should be based on factors such as distance, fuel consumption, maintenance costs and passenger numbers. He proposed a “cost-per-kilometre and cost-per-passenger model” to make fare adjustments more objective and reduce reliance on negotiations whenever operating costs change. The Executive Director of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, says some increase in transport fares may be justified as operators continue to grapple with rising fuel and maintenance costs.

Speaking in an interview on JoyNews, he said the government’s GH¢2 per litre intervention on diesel has helped sustain fuel prices for transport operators but has not fully offset the rising cost of operations. According to him, the Ghana Private Road Transport Union (GPRTU) has been engaging stakeholders for several months over its request for a fare adjustment. He argued that given the financial pressures facing commercial drivers, “it is only fair that some amount of increase be allowed to the driving community.” Mr Amoah said he would expect the ongoing discussions between the GPRTU and government to result in a lower adjustment than the 30% increase initially proposed by the union.