GH¢2 diesel subsidy not enough to prevent transport fare increases – GPRTU

The Ghana Private Road Transport Union (GPRTU) has stated that the government's GH¢2 per litre diesel subsidy is insufficient to prevent transport fare hikes, as it does not alleviate the skyrocketing fuel prices adequately. Deputy Public Relations Officer of the GPRTU, Samuel Amoah, emphasized that while they appreciate the government's decision to lower diesel prices, the current fuel cost remains considerably higher than when discussions on adjusting transport fares commenced.

During an interview on JoyNews, Mr. Amoah reminded that transport operators were initially requested by the Transport Ministry to postpone a proposed 30% fare increase following assurances from the government that measures would be taken to reduce fuel prices. "We were asked to hold on because they promised that government was going to work on the fuel price and that the next price would come down and all that.

By then the diesel was around GH¢17, then petrol was around GH¢15. We were expecting a reduction," he explained. However, he went on to say that the current market dynamics have altered, with diesel prices inching towards GH¢20 per litre. Consequently, the GH¢2 subsidy only brings the prices back to nearer the previous levels rather than providing a significant reduction.

"But now during this price window, diesel is approaching GH¢20 a litre. So because government is taking GH¢2 from the diesel, it means it is coming back to where it was, and that will not have any significant effect on us," Mr. Amoah contended. He further opined that the subsidy might only temper the scale of any forthcoming transport fare adjustments instead of eliminating the necessity for an increase.

"What will happen is if we are to increase the fares, maybe the percentage that we were proposing is something that we may consider bringing it down," he stated. The GPRTU had previously advocated for a 30% hike in transport fares, attributing it to the escalating fuel costs and operational expenses. Mr. Amoah reiterated that commercial transport operators are still grappling with substantial cost pressures and will evaluate the impact of the government's intervention before deciding on future fare strategies.