Transport Unions Suspend Planned 30% Fare Hike

Transport unions have suspended their planned 30 percent increase in public transport fares following high-level discussions with the Ministry of Transport, offering commuters temporary relief while government works to address concerns over rising fuel prices. The decision was reached after a meeting between officials of the Ministry and leaders of the transport unions, who had earlier announced plans to adjust fares upward ahead of the next petroleum products pricing window. The unions said the proposed fare adjustment had become necessary because of escalating operational costs, particularly the persistent rise in fuel prices, which they argue has placed enormous financial pressure on commercial transport operators across the country.

Speaking to Citi News after the meeting, the Deputy Public Relations Officer of the Ghana Private Road Transport Union (GPRTU), Samuel Amoah, said both parties held extensive discussions on the concerns raised by transport operators, with government assuring the unions that efforts are underway to stabilize and reduce fuel prices. According to him, the unions urged government to prioritize measures that would ease the burden on transport operators by bringing down the cost of petroleum products, which remain one of the biggest expenses in the sector. “The meeting was about the proposed transport fare increment before the increment of petroleum products and other components that we use to run our businesses. We explained things to the ministry, and they also gave us their word,” he said.

“Our proposal was for the government to try to see to it that fuel prices will come down, and they told us that they have heard us and are working to ensure fuel prices will drop.” Mr. Amoah explained that after prolonged deliberations, the unions agreed to temporarily suspend the planned fare increase to allow government time to implement measures aimed at easing fuel costs.

However, he cautioned that the decision should not be interpreted as a withdrawal of the unions’ concerns, noting that industry assessments suggest fuel prices could rise again in the upcoming pricing window. “So there was a long deliberation, but we finally agreed that we will hold off on the increase, but then our own investigation proved that we will likely see another fuel price increase in the next pricing window,” he stated.

He warned that any further increase in fuel prices would intensify the financial strain on commercial drivers, making it increasingly difficult for operators to absorb the additional costs without adjusting transport fares. “If it happens that the fuel price goes up again, we will still approach them because if it goes up again, it will be difficult for the drivers to contain the pressure,” he added. The suspension of the proposed fare increase is expected to provide short-term relief for commuters, many of whom have faced rising living costs amid economic pressures.

Nevertheless, the unions maintain that the sustainability of current transport fares will largely depend on developments in the petroleum pricing regime and government’s ability to stabilize fuel prices. The outcome of the next petroleum pricing window is therefore expected to play a decisive role in determining whether transport fares remain unchanged or whether operators will renew calls for an upward adjustment in the coming weeks.

Source: Citi newsroom
Author: Joyce Owusu