Fuel price, transport fares increased
Prices of fuel and transport fares have shot up by 23.08 and 15 per cent respectively.
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Therefore, when commuters board ‘trotros’, taxis and ‘Kufuor’ (Metro Mass Transit) or Yutong buses such as the VIP to any part of the country today, they will be required to pay new fares to their destinations, while motorists will pay more for petroleum products.
The regulators of these sectors — the National Petroleum Authority (NPA) and the Ghana Road Transport Co-ordinating Council (GRTCC) — announced at the weekend the increases, which take effect from today, Monday, July 14, .
A statement issued by the GRTCC and the Ghana Private Road Transport Union (GPRTU) of the Trades Union Congress (TUC) in Accra said, “The road transport operators have reviewed the prices of the various elements that go into the running of commercial transport and have issued new road transport fares.”
“The new road transport fares take effect from Monday, July 14, 2014,” it said.
The statement, titled “Second Scheduled Increase in Road Transport Fares”, was signed jointly by Mr Stephen K. Okudzeto, the General Secretary of the GPRTU of the TUC, and Alhaji Aliyu Baba, the General Secretary of the GRTCC.
According to the operators, the new road transport fares cover intra-city (trotro), inter-city (long distance) and taxicabs.
They asked members to comply with the new fares and post the fare list at their loading terminals to avoid any confrontation with the travelling public.
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The statement also requested members, commuters and the public to co-operate for the success of the changes.
According to the latest figures released by the NPA, most petroleum products would be sold a little above 20 per cent of their current prices.
The price of petrol (premium) has been increased by 23.08 per cent and will now sell at GH¢3.36 a litre, instead of its previous price of GH¢2.73 for a litre.
That of kerosene has also gone up by 23.75 per cent from GH¢2.61 a litre to GH¢3.23 a litre, while that of diesel has increased by 22.01 per cent and will now sell at GH¢3.27 a litre, instead of its previous price of GH¢2.68 per litre.
On the other hand, the price of premix fuel has shot up by 25.60 per cent to GH¢1.57 per litre, while that of liquefied petroleum gas (LPG) has increased by 15.68 per cent and will now sell at GH¢3.32 per litre.
In an interview with the Daily Graphic yesterday, Mr Yaro Kasanbata, the Public Relations Officer of the NPA, said the changes in fuel prices had come about as a result of the change in product prices, the exchange rate and other factors.
Full cost recovery
He explained that government subsidies had been removed because whenever there were delays in payment, the NPA was denied letters of credit to import fuel.
“With the full cost recovery we are employing now, the full cost of the product is passed on to the consumer. What it means is that when there is a reduction, the consumer will pay lower prices,” he said.
Other petroleum products
Other products whose prices have increased are gas oil, which is up by 22.01 per cent from GH¢2.68 a litre to GH¢3.27 a litre; unified petroleum, which is up by 2.08 per cent from GH¢2.89 a litre to GH¢2.95 a litre, and kerosene for mines, which has increased by 0.62 per cent from GH¢3.21 a litre to GH¢3.23 for a litre.
The fuel price increases are the third experienced this year.
Even before the fuel prices and new fares came into effect, some drivers had expressed the fear that the increases would adversely affect their businesses.
At the Tudu Station in Accra, some drivers who spoke to the Daily Graphic stated that an increase in the current fares would affect their businesses.
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Mr Michael Zormelo said that many people had stopped patronising their services because of the high fares.
He said expensive spare parts, together with the increases in fares, would discourage people from travelling.
Simon Apetomashie urged the government to suspend the increases in the prices of petroleum products to enable drivers to maintain the current fares.
Daniel Yaw Adoku said the increases in fares would create disagreements between passengers and drivers, a situation which would affect patronage of drivers’ services.
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At the Neoplan Station in Accra, some drivers expressed worry over the increases in fares and wished that the decision had been taken after December 2014.
“We are facing crisis in our business because fewer people patronise our services. This decision of increasing fares should be taken after December and not now,” Kofi Amoah said in a disappointing tone.
While some drivers thought the decision should be suspended, others were of the view that fares should not be increased above 10 per cent.
At the VIP Bus Terminal, a driver who gave his name only as Osei stressed the need for the government to review the decision, saying, “This will greatly affect the activities of transport operators because currently the fare from Accra to Kumasi is GHc35, meaning it would be increased to about GHc45 and that will create problems.”
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Last adjustment
The last time the GRTCC effected a 10 per cent upward adjustment in road transport fares was April 2014, following increases in fuel prices by seven per cent.
That decision was based on consultations among the partners in the road transport sector and previous agreements between transport operators and the NPA.
Today’s increases in fares are the fifth since a new model for computing fares was agreed upon in August 2013.
The 15-per cent increase in fares takes effect at the time when the prices of cement and sachet water have also been increased.
Utility tariffs have also gone up with effect from July 1, 2014.