The CEO of Ghana's National Petroleum Authority (NPA), Godwin Edudzi Tamakloe, has expressed concern over the potential impact of higher transport fares on consumers and inflation. His comments come after the recent increase in fuel prices, which has added pressure to ongoing discussions between transport operators and the government. The Ghana Private Road Transport Union (GPRTU) has proposed a 30% increase in transport fares, citing rising operational costs.
The NPA recently raised the price floor for petrol to GH¢16 per litre and for diesel to GH¢16.77 per litre, effective September 16. This move has led some Oil Marketing Companies to increase their pump prices. Mr. Tamakloe, speaking on Joy News' PM Express Business Edition, emphasized that the potential impact of higher fares on consumers and inflation is a major concern. He noted that he and the Transport Minister have been engaging with transport operators to find ways to manage the pressure.
Transport operators face several major cost components, including vehicle maintenance, spare parts, fuel, driver and mate payments, and insurance. Mr. Tamakloe highlighted that payments to drivers and mates have generally remained stable, while insurance costs have also largely remained unchanged. However, the recent fuel price increases have become a significant impact on the industry.
According to Mr. Tamakloe, government measures have helped absorb some of the potential increases transport operators could otherwise have faced. The cedi stability has absorbed potential costs from the forex end, and government support has been aimed at cushioning the impact of higher fuel prices. He also noted that the NPA and government have engaged transport operators on the need for all sides to share the burden.
Mr. Tamakloe commended the leadership of the GPRTU and other transport groups for engaging government constructively. He noted that these engagements have helped put the planned fare increase on hold. However, he also mentioned that some transport operators have still increased fares without agreement, describing them as "recalcitrant."
The NPA boss emphasized that the government is working to cushion consumers against fuel price hikes. He noted that several options are being considered to mitigate the impact of rising fuel prices on consumers. Mr. Tamakloe also highlighted Ghana's fuel market vulnerability, citing the country's import dependence.
Mr. Tamakloe's concerns come as the country prepares for potential fuel supply challenges. He assured that the NPA has buffers in place to prevent fuel firms from holding Ghana to ransom. The NPA boss also mentioned that the country has at least six weeks of fuel cover, calming supply fears.
Key points
- NPA boss expresses concern over potential transport fare hikes
- Government measures have helped absorb some potential increases in transport costs
- Engagements between government and transport operators have put planned fare increases on hold
