Editorial: Is GPRTU Adding To Inflationary Pressures?

Recent actions by the Ghana Private Road Transport Union (GPRTU) to raise transport fares by eight per cent have drawn attention from The Chronicle. However, concerns have arisen that some drivers and traders are effectively increasing fares beyond the approved adjustment through a practice known as upward rounding. This involves refusing to accept lower-denomination coins like 10 or 20 pesewas and instead charging additional amounts such as GH¢1.

Although the refusal to accept small coins may seem minor, the cumulative effect on consumers' expenditures is significant, particularly for low-income households. The Chronicle argues that this practice can exacerbate inflationary pressures in Ghana, which are already driven by a variety of factors including monetary conditions, exchange-rate movements, and supply constraints.

If widely adopted, upward rounding could lead to a significant increase in the prices of basic goods and services. The transport sector is particularly vulnerable, as higher transport costs can trickle down to affect the cost of transporting essential commodities. Therefore, the Government must investigate whether transport operators are charging more than the approved fare increase.

If so, enforcement is necessary to ensure that commuters are not subjected to additional fees through informal rounding practices. Meanwhile, the Bank of Ghana should also monitor the declining practical use of lower-denomination coins and consider measures to address the issue. The Chronicle stresses that while small coin denominations can pose practical difficulties, there is no justification for allowing arbitrary upward rounding to become the norm, especially when the Government is striving to stabilise the economy and protect the purchasing power of Ghanaians.