Public Transport Drivers Propose 20% Hike In Transport Fare
The Concerned Drivers Association of Ghana has proposed a significant 20% increase in transport fares in response to a recent 4% surge in petroleum prices at the pump. The proposal, set to take effect on July 22, 2024, aims to standardize fare adjustments nationwide.
David Agboada, Public Relations Officer of the Association, announced the proposed hike during an interview on Accra FM on Wednesday, July 17, 2024. Mr Agboada emphasized the necessity of uniform fare increases across the country to prevent regional discrepancies.
“We aim to avoid a situation where drivers in Accra charge differently from their counterparts in other regions,” he
stated, highlighting the importance of a seamless, nationwide fare adjustment.
The announcement comes in the wake of a recent forecast by the Chamber of Petroleum Consumers (COPEC), predicting a 4% increase in petroleum product prices. This adjustment, effective from July 16, 2024, is attributed to the continued depreciation of the cedi against the dollar. The exchange rate has shifted from an average of USD1.2779 to USD1.462, reflecting a -1.205% depreciation.
COPEC’s statement, issued on July 14, 2024, anticipates retail price increases for Petrol, Diesel, and Liquefied Petroleum Gas (LPG). Petrol prices are projected to rise to GHS14.795 per litre, Diesel to GHS15.332 per litre, and LPG to GHS16.205 per kilogram. Consequently, a 14.5 kg LPG cylinder is expected to cost GHS234.97.
In light of these anticipated increases, COPEC has reiterated its call for the government to mitigate the financial impact on consumers. The organization urges the government to reduce taxes on LPG or to subsidize its price to enhance nationwide accessibility and usage, ultimately promoting environmental conservation by reducing reliance on firewood.
The proposed fare increase also follows recent amendments to the process of fare adjustments. Mr. Agboada noted that a delegates’ conference held in the Central Region, with Vice President Mahamadu Bawumia in attendance, amended the clause requiring the sector minister’s input in fare adjustments.
As the transport sector braces for these changes, the impending fare hike underscores the broader economic challenges faced by Ghanaians amid fluctuating global oil prices and currency depreciation.
