From Monday, February 22, 2021, there will be a 10% increase in transport fares. This was announced by The National Drivers Association of Ghana in a press release.
“We the National Drivers Association of Ghana wish to announce to cherished clients that, there will be a 10% increment of passengers fare coming Monday 22/02/2021,” a section of the press release revealed.
Why 10% increase in Transport fares
According to the association, the increment comes as a result of the increase in some taxes at the Driver and Vehicle Licensing Authority (DVLA) and the ports. The association explained that the service charge at DVLA had been increased to 15%, tariffs on spare parts increased to 40%, and tariffs on Lubricants increased by 25%.
“This decision was informed by the increment of some taxes at the DVLA and the ports. As we speak, the service charge at DVLA has been increased to 15%, tariffs on spare parts increased to 40%, tariff on Lubricants increased by 25%,” another section of the release read.
Meanwhile, with fuel prices at the pump continually experiencing a rise, will transportation fares further increase?
Last year, during the reduction in passenger numbers due to social distancing protocols, transport fares increased by as much as 30% contrary to the 15% increment approved by the government.
This year, prices of fuel are expected to continue rising. Already, prices at some fuel stations have gone up by 12 pesewas. Several of the oil marketing companies are currently selling above GH¢5.00 per litre with just a few selling below the GH¢5.00 mark.
However, the Executive Secretary of the Chamber of Petroleum Consumers, COPEC, Duncan Amoah said his outfit will oppose any call for an increase in transport fares.
“The last time increments happened somewhere last year June, fuel prices were at much higher levels than they are currently. That was a situation where social distancing took a huge toll on transport operators. So, they needed to recoup something. Transport fares went by as much as 30%. Those variables are not at play as we speak. So, any attempt to increase transport fares will be resisted,” Duncan Amoah said.
Last year, the Government of Ghana failed in its attempt to overturn the 30% increase in passenger fares. Should transport fares go up any further, can a resistance from COPEC prove potent?