The 10% increase in transport fares by the Ghana Private Road Transport Union, GPRTU takes effect from today Monday, September 16.
Justifying the reason for the increase in transport fares, the GPRTU said that prices of the various components that go into the running of commercial transport services have gone up.
“This is to accommodate predominantly an increase in fuel prices,” Kwame Kuma, the National Chairman of GPRTU said in a statement.
Also the increment has become necessary after the National Petroleum Authority (NPA) directed the Oil Marketing Companies to begin applying the revised Energy Sector Levies.
Furthermore, other indicators that has pushed for the 10% increment include; the Road Fund Levy, Energy Debt Recovery Levy, as well as the Price Stabilization and Recovery Levy which have all increased by about 20 percent.
Transport fares were last increased by the GPRTU in April 2017 by 15 percent.
Ghanatalksbusiness’ Analysis
Judging from the current state of the economy, it is indeed bad timing to announce a 10% increase in transport fares.
A chunk of employees formerly in financial industry are reeling from job losses stemming from the massive shutdown of financial institutions.
There are practically no jobs for school leavers, except for the few brave individuals who choose to go entrepreneurial. Such individuals are striving to build their businesses and make ends meet.
ALSO READ: Impacts of fuel price hikes on the economy [Article]
Job losses and unemployment imply low incomes. Further, the Ghanaian population can do without an additional hit from increase in transport fares, more so at the beginning of a new school year. Parents are already inundated with meeting school expenses, with some sources of income curtailed.
Our economic managers should do a better job to seal drains in national revenue. This will possibly minimize the introduction of numerous levies with its added repercussions
