The Ghana Private Road Transport Union (GPRTU) is insisting on a minimum 25% increase in transport fares, ahead of a final meeting with the government. This demand is based on the rising costs of operating commercial vehicles, including fuel, spare parts, insurance, lubricants, and fees charged by the Driver and Vehicle Licensing Authority (DVLA). The union's stance comes after a previous meeting with the Ministry of Transport, where a proposal for a 10-15% fare increase was rejected.

According to GPRTU Deputy Public Relations Officer, Samuel Amoah, the union's position was informed by significant increases in several operating costs faced by commercial transport operators. He cited higher insurance premiums as one area putting additional pressure on drivers. For instance, insurance premiums for a 15-seater vehicle have risen from GH¢837 to GH¢994 annually, while premiums for a 23-passenger Sprinter have increased from GH¢930 to GH¢1,194.

The union also pointed to increases in DVLA charges introduced in April, as well as the continued high cost of spare parts used by commercial vehicle operators. Despite claims of reductions in spare-parts prices, these have not translated into lower costs for vehicles commonly operated by GPRTU members, including Sprinter, Toyota, and Nissan buses. The union has presented these concerns to the Ministry of Transport as negotiations continue.

The GPRTU had initially expected a 30% increase in transport fares but is willing to accept a minimum of 25%. The union's rejection of the government's proposal has led to a stalemate, with the final meeting expected to determine the percentage adjustment to be applied to transport fares. Mr. Amoah expressed hope that the final engagement with the government would produce an agreement acceptable to both sides.

The rising costs faced by commercial transport operators have been a significant concern for the GPRTU. In addition to higher insurance premiums and DVLA charges, the union has also highlighted the impact of increased fuel costs on their operations. With the cost of running commercial vehicles continuing to rise, the union is pushing for a fare increase that reflects these changes.

Taxi operators are also feeling the pinch, with insurance premiums rising from about GH¢701 to GH¢744. The GPRTU's demand for a fare increase is aimed at ensuring that transport operators can continue to provide services without incurring significant losses. The union's members are waiting anxiously for the outcome of the final meeting with the government.

The final meeting between the GPRTU and the government is expected to produce a win-win situation, according to Mr. Amoah. The union is optimistic that an agreement will be reached, and a percentage increase will be determined. This will bring relief to transport operators who have been affected by the rising costs of operating commercial vehicles.

Key points

  • The GPRTU is demanding a minimum 25% increase in transport fares.
  • The union's demand is based on rising costs, including fuel, spare parts, insurance, and DVLA fees.
  • The final meeting between the GPRTU and the government is expected to determine the percentage adjustment to be applied to transport fares.

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SaharaWire Newsroom
SaharaWire

Reporting for SaharaWire from the Nairobi bureau.