The State Transport Company (STC) in Ghana will increase its passenger fares by up to 8% this week. Deputy Managing Director of STC, Nuru Hamidan, announced this on Joy FM, citing the rising cost of fuel and other operational expenses as the main reasons for the fare adjustment. The Transport Ministry has approved an 8% increase across the board. Hamidan stated that despite the increase, STC aims to keep its fares relatively affordable as a public transport provider.
According to Hamidan, the current fares of STC are significantly lower than those of other transport operators on some routes. For example, the fare from Accra to Wa is GH₵250 for STC, while the Ghana Private Road Transport Union (GPRTU) charges GH₵370, and VIP charges GH₵309. He emphasized that STC needs to balance affordability with the need to sustain its operations. The company is facing higher expenditure on fuel, vehicle maintenance, salaries, utilities, and other overhead costs.
The fare increase is necessary to help STC sustain its operations, as the company has been compelled to adjust fares due to rising costs. Hamidan mentioned that STC is engaging with the Transport Ministry to find alternative ways to subsidize fares. This will ensure that passengers can afford transport while also enabling STC to cover its expenses.
STC's financial performance has been a concern, with the company cutting its net loss by 93% to GH¢5.18m despite a 12% revenue decline. The company is also taking steps to modernize its operations, including the introduction of smart monitoring and cashless systems in 2026. Additionally, STC aims to acquire 120 new buses to tackle mounting terminal delays.
The Transport Ministry is open to private sector partnerships to increase STC's bus terminals. This move is expected to help improve the company's efficiency and reduce delays. The Ministry is also engaging with stakeholders to find solutions to the challenges facing the transport sector.
Other transport-related issues in Ghana include a recent accident involving an STC van and a tricycle in Ho, which resulted in one fatality and several injuries. The incident highlights the need for improved road safety measures. STC has also taken steps to repossess landed property in Kumasi that was rented to a private individual.
The fare increase by STC is part of a broader effort to address the challenges facing the transport sector in Ghana. The sector has seen significant developments, including the launch of a national-level fisheries co-management committee with support from the Ghana Fisheries Recovery Activity (GFRA). The committee aims to promote sustainable fishing practices and improve the livelihoods of fishing communities.
Key points
- STC fares to increase by up to 8% due to rising fuel prices and operational costs.
- The company aims to keep its fares relatively affordable while sustaining its operations.
- STC is engaging with the Transport Ministry to find alternative ways to subsidize fares.
