Fuel Price Hikes: Ad hoc interventions won’t solve transport fare concerns – Energy analyst

Energy analyst Kwadwo Poku Nsafoah has warned that ad hoc measures will not solve the transport fare concerns caused by rising fuel prices. In an interview with JoyNews’ The Pulse, he emphasized the need for the government to collaborate with transport unions, including the Ghana Private Road Transport Union (GPRTU) and other private transport unions, to establish a sustainable fare adjustment mechanism. This mechanism should take into account both increases and decreases in operating costs.

Poku pointed out that the proposed 30% increase in transport fares should not be solely based on the rising fuel prices, as transport operators also account for other expenses, such as insurance, in their calculations. He argued that a mutually agreeable middle ground should be reached to ensure that both parties accept the proposed fare adjustments.

Furthermore, Poku suggested that the agreement should also include provisions for transport operators to reduce fares when fuel prices decrease. This approach would help alleviate concerns that fare increases could persist even after the factors that led to them have subsided. He questioned the long-term viability of the government's current interventions to protect consumers from rising petroleum prices, stating that such ad hoc measures would not address the underlying issues.

Poku cautioned that the pressures on petroleum prices are expected to persist, especially considering the ongoing conflict on the international market. He estimated that the war could last for several months, potentially up to seven months. In light of these challenges, the energy analyst urged the government to move beyond temporary measures and develop a longer-term framework for managing the impact of fuel price fluctuations on transport fares.