Fuel prices may rise, but GOIL says 30% transport fare hike doesn’t add up

GOIL, the Ghana Oil Importers and Exporters Limited, has questioned the proposed 30% increase in transport fares by the Ghana Private Road Transport Union (GPRTU), asserting that rising fuel prices alone cannot rationalize such a hike. Chief Executive Officer Edward Bawa emphasized that other factors like the cedi-dollar exchange rate, spare parts, and insurance costs should also be taken into account before any fare adjustments.

Bawa pointed out that GOIL is currently evaluating the situation and will endeavor to alleviate the burden on consumers. He reiterated that GOIL seeks to maintain a consumer-centric approach despite covering its operational costs. However, Bawa made it clear that while pump prices may rise due to escalating fuel costs, the exact impact on transport fares depends on the strategies employed by companies like GOIL.

The CEO also highlighted the importance of considering the broader economic context, including the stability of the cedi. Despite global crude oil prices nearing $100 per barrel, Bawa noted that Ghana's economic situation remains relatively stable. This stability, he suggested, could mitigate the immediate impact of fuel price hikes on transport fares.

While GOIL acknowledged its responsibility to facilitate fare control for transport operators, Bawa acknowledged the pressure global developments put on oil marketing companies. He expressed concern over geopolitical factors affecting petroleum prices and emphasized the need for companies to shield consumers from excessive pricing.