The Ghana Private Road Transport Union (GPRTU) has rejected any proposed transport fare increase below 25%, ahead of a final meeting with the government to determine new fares. The union's Deputy Public Relations Officer, Samuel Amoah, stated that the GPRTU's position was informed by increases in the cost of fuel, spare parts, insurance premiums, DVLA charges, lubricants, and engine oil. The union operates various vehicles, including Sprinter buses, Toyota buses, and Nissan buses.
According to Amoah, the union's rejection of a proposed 10-15% fare increase was based on the rising costs of operating commercial vehicles. He cited increases in insurance premiums for commercial vehicles as one of the costs affecting operators. For instance, insurance premiums for a 15-seater vehicle increased from GHC837 to GH¢994 yearly, while a sprinter with 23 passengers saw an increase from GHC930 to GHC1,194.
Amoah also mentioned that DVLA charges were increased in April, further increasing the cost of operating commercial vehicles. Additionally, prices for spare parts commonly used by commercial operators remained high despite reductions announced by some suppliers. The union has presented its concerns to the Ministry of Transport and is hopeful that the final meeting will produce an agreement acceptable to both sides.
The GPRTU's position comes as the government and transport operators negotiate a fare adjustment, following the ministry's earlier proposal for an increase of between 10% and 15%. Amoah expressed optimism that a final decision will be taken soon, stating that the union's drivers are waiting to hear something from the leadership. He believes that by the close of the day, it will be a win-win situation, and the union will not step back without getting any percentage for its drivers.
The union's expectation is strong on a 30% increment, according to Amoah. He stated that the union made the ministry understand that it is not looking at anything less than 25% during their last meeting. The GPRTU's concerns are centered around the rising costs of operating commercial vehicles, which have been affected by various factors, including increases in insurance premiums and DVLA charges.
Taxi operators have also seen an increase in insurance premiums, with those previously paying about GHC701 now paying about GHC744. The union is operating under the understanding that a fare increase is necessary to offset the rising costs of operating commercial vehicles. A final meeting between the union and the government is expected to produce a decision on the proposed fare increase.
The outcome of the meeting between the GPRTU and the government is expected to have a significant impact on the transport sector in Ghana. The union's rejection of a proposed fare increase below 25% reflects its concerns about the rising costs of operating commercial vehicles. A decision on the proposed fare increase is expected soon, which will affect the livelihoods of thousands of Ghanaians who rely on public transportation.
Key points
- The GPRTU has rejected a proposed transport fare increase below 25%, citing rising costs of fuel, spare parts, and insurance premiums.