Insurance cost has largely remained stable – NPA boss on transport fare pressure
The CEO of the National Petroleum Authority (NPA), Godwin Edudzi Tamakloe, says insurance costs for transport operators have remained largely stable despite growing pressure on the sector.
Godwin Edudzi Tamakloe, CEO of the National Petroleum Authority (NPA), addressed concerns about transport fare pressure during a recent interview. He stated that insurance costs for transport operators have remained largely stable despite mounting challenges. Fuel prices were the main driver of cost pressure, he explained, noting that the NPA had recently raised the price floor for petrol and diesel.
Several Oil Marketing Companies followed suit, raising their pump prices. The General Public Road Transport Union (GPRTU) proposed a 30% increase in transport fares, but the proposal is still under review. Tamakloe expressed concern about the potential impact of higher fares on consumers and inflation. The NPA and the Transport Ministry have been engaging transport operators to assess their actual cost pressures.
He explained that transport operators consider three key areas when determining their operating costs: maintaining freight, spare parts, fuel, and staff costs. Insurance costs have remained stable, he noted, with the major cost change being fuel prices. The cedi's stability has also helped limit some operating costs, particularly for imported spare parts.
The NPA has been working with transport operators to share the burden of rising fuel prices, rather than immediately passing them on to commuters. Some fare increases have already taken place independently, but the attempt to increase fares has been put on hold.
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