The CEO of the National Petroleum Authority (NPA), Godwin Edudzi Tamakloe, has expressed worry about attempts by some transport operators to increase fares arbitrarily following recent fuel price hikes. He made these comments on Joy News' PM Express Business Edition, highlighting the pressure rising petroleum prices are putting on transport operators and the potential impact on inflation. The NPA has raised its minimum price floors for petrol and diesel, keeping fuel costs at the centre of discussions between government and transport operators.
According to Mr. Tamakloe, the NPA, together with the Transport Minister, has been engaging transport operators over the impact of fuel prices on their businesses. He noted that transport operators have several major costs to consider, including vehicle maintenance, spare parts, fuel, and payments to drivers and mates. Mr. Tamakloe emphasized that some of these costs have remained relatively stable, such as insurance, while fuel has become the main source of pressure.
Mr. Tamakloe mentioned that the stability of the cedi has helped absorb some of the potential increase in the cost of imported spare parts. He also noted that government has been intervening periodically to cushion the impact of higher fuel prices. These considerations have formed part of discussions with transport owners on the need for both sides to absorb some of the increased costs.
The NPA boss commended the transport unions' leadership for constructive engagement, which has helped prevent a broader increase in transport fares. He specifically mentioned the GPRTU, PROTOA, and other leaders for their cooperation. However, Mr. Tamakloe revealed that some operators have ignored the engagement and increased fares on their own, describing them as "recalcitrant."
Mr. Tamakloe's comments come as the NPA continues to monitor the fuel market and its impact on the economy. The authority has been working to ensure that fuel prices do not have a disproportionate impact on consumers. He emphasized that the government's interventions have been aimed at cushioning the impact of fuel price hikes.
The issue of fuel prices and their impact on transport fares is a critical one in Ghana, where many people rely on public transportation. The NPA's efforts to engage with transport operators and prevent arbitrary fare increases are seen as crucial in maintaining stability in the sector.
The government's efforts to mitigate the impact of fuel price hikes on consumers are ongoing. The NPA will continue to monitor the situation and work with stakeholders to find solutions that balance the needs of transport operators and consumers.
Key points
- The NPA boss, Godwin Edudzi Tamakloe, has expressed worry about attempts by some transport operators to increase fares arbitrarily following recent fuel price hikes.
- The NPA has been engaging with transport operators to prevent a broader increase in transport fares.
- Some transport operators have ignored the engagement and increased fares on their own, despite the government's efforts to cushion the impact of fuel price hikes.
