The Executive Director of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, has suggested that workers' salaries may need to be reviewed alongside any increase in transport fares to cushion commuters from rising living costs. According to him, commercial transport operators are facing increased fuel and maintenance costs, which may lead to higher fares. This, he noted, would ultimately affect commuters who depend on public transport.
Mr Amoah's comments come amid ongoing discussions between the Ghana Private Road Transport Union (GPRTU) and government over the union's request for a transport fare adjustment. The GPRTU has been seeking an increase in fares as operators contend with rising operational costs, including fuel. Although the government's GH¢2 per litre intervention on diesel has provided some relief, it has not stopped the increase in fuel prices.
Mr Amoah noted that even with the government's intervention, some adjustment to transport fares could become necessary to ensure drivers generate enough revenue to maintain their vehicles. He suggested that organised labour, including the Trades Union Congress (TUC), may need to engage government and employers on possible salary adjustments to help workers cope with rising transportation costs.
The COPEC Executive Director called for a more scientific approach to determining transport fares, saying fares should be based on factors such as distance, fuel consumption, maintenance costs, and passenger numbers. He proposed a "cost-per-kilometre and cost-per-passenger model" to make fare adjustments more objective and reduce reliance on negotiations whenever operating costs change.
According to Mr Amoah, the end payer is going to bear the brunt of the increased transport fares because salaries have not been increased. He emphasized that those who depend on public transport and have not had their salaries increased will still be losing in this regard. Therefore, he suggested that salaries and incomes may need to be adjusted upwards.
The GPRTU's request for a transport fare adjustment is currently under discussion with the government. The union is seeking a 25% increase in fares, which has been met with resistance from commuters. The outcome of the negotiations is yet to be determined.
COPEC's suggestion to review salaries alongside transport fares is aimed at cushioning commuters from the impact of rising living costs. The proposal is also expected to help workers cope with the increasing costs of transportation.
Key points
- COPEC suggests reviewing salaries alongside transport fares to cushion commuters.
- The GPRTU is seeking a 25% increase in transport fares due to rising operational costs.
- COPEC proposes a scientific approach to determining transport fares.
