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

Energy analyst Kwadwo Poku Nsafoah says government must engage transport unions and agree on a sustainable formula for adjusting fares.

He is warning that short-term interventions will not resolve the challenges created by rising fuel prices.

Speaking on JoyNews’ The Pulse, he said government should “sit down with the Ghana Private Road Transport Union (GPRTU) and other private transport unions to agree on a fare adjustment mechanism that considers both increases and decreases in operating costs.”

His comments come amid renewed increases in petroleum prices and ongoing discussions over a proposed 30% increase in transport fares.

Mr Poku said the proposed fare increase should not be linked solely to rising fuel prices, as transport operators also cite other expenses, including insurance, in their calculations.

“So I think there should be a meeting between government and them to come to a middle point where they will agree that if you are to increase it by this much, then everybody would agree to it,” he said.

He argued that such an agreement should also require transport operators to reduce fares when fuel prices fall.

The energy analyst said this would help address concerns that fare increases could remain in place even after the factors that triggered them had eased.

He also questioned the sustainability of government’s current interventions to cushion consumers against rising petroleum prices.

“Government [needs] to find a way forward. This ad hoc way will not solve the problem,” Mr Poku said.

According to him, the pressures on petroleum prices are likely to persist, particularly given developments on the international market.

“The war is not going to end any soon. Of course, it’s going to be a month, three months, twelve. We’ve got seven months already,” he said.

Mr Poku therefore urged government to move beyond temporary measures and work with transport operators on a longer-term framework for managing the impact of fuel price fluctuations on transport fares.

Also read:

• Fuel prices rise as Star Oil raises petrol to GH¢16.77, diesel to GH¢17.77

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