GPRTU may suspend 30% fare increase after government cuts diesel margin

The Ghana Private Road Transport Union (GPRTU) says it could abandon its proposed 30% increase in transport fares after the government reduced the regulatory margin on diesel by GH¢2.00 per litre.

The union has welcomed the temporary measure but will wait for consultations with its regional branches and other transport groups before making a final decision.

The government introduced the reduction for one month in response to rising fuel prices. It said the move was intended to protect consumers, prevent increases in transport fares, reduce inflationary pressure and offer support to households and businesses.

Speaking on Channel One Newsroom on Monday, 3 August, GPRTU Deputy Public Relations Officer Samuel Amoah said the union would assess how much difference the intervention made at fuel stations before deciding whether its proposed fare adjustment was still necessary.

The GPRTU had been considering a 30% fare increase because of higher fuel costs. Mr Amoah said the reduction in the diesel regulatory margin could change the union’s position.

“What the government, the President, has done now by taking the GH¢2 from the petroleum product means that we are coming back to where it was,” he said.

He said GPRTU leaders had held a meeting on Monday and agreed that the union’s regional branches should be consulted before any announcement was made.

“As I’m speaking to you, a decision will be taken tomorrow to find out if we have to go ahead with this increment. If yes, what percentage margin are we looking at?” he said.

Mr Amoah was asked whether the government’s action was likely to bring the planned fare increase to an end. He said that was possible, although the final outcome would depend on discussions among transport representatives.

“I can say yes, in a way. That would depend on the final meetings tomorrow by the leadership of GPRTU and that of the other unions,” he said.

The union also intends to monitor the effect of the reduction at fuel pumps before confirming its position.

“We’ll still wait for tomorrow to see the reflections at the pump. Then we’ll know what to do finally,” he said.

Mr Amoah said the reduction would provide some relief for commercial drivers, estimating that a driver could save about GH¢9 when buying a gallon of diesel.

“It means that if a driver buys one gallon of fuel, he is saving about nine cedis. It’s quite well,” he said.

Despite the apparent relief, he stressed that the GPRTU’s decision would be based on feedback from drivers and transport operators across the country.

The union represents drivers in all 16 regions of Ghana and said any decision would need to take account of the interests of drivers, passengers and transport owners.

“We represent drivers. We have covered all 16 regions. All the decisions that we take, we make sure that they will favour the drivers, the passengers and the transport owners as well,” he said.

The GPRTU is expected to reach a final position after the leadership consultations on Tuesday, when it will determine whether to proceed with the proposed increase and, if so, what level of adjustment would apply.