Transport fares are expected to go up by some 10% later this week if the unionised operators, Ghana Private Road Transport Union and the Ghana Road Transport Coordinating Council, are able to get the Transport Minister’s blessings on this margin of increase.
The operators and the Transport Minister, Kwaku Ofori Asiamah, are expected to meet at a crunch meeting this Wednesday, June 22nd, 2022.
However, at a meeting between the two bodies and the Transport Minister last Friday, June 17th, 2022, there was some agreement that the fares should be reviewed.
But a final agreement was not reached on the margin of increase of the petroleum products.
The meeting also agreed that the time has come for some taxes on fuel to be reviewed.
Prices of fuel on the local market increased over 4% on average terms in the just ended Pricing window of June 15, 2022.
For the rest of June 2022, the Institute for Energy Security (IES) projected another sharp rise in the price of the various products on the back of the 0.86% depreciation of the cedi and the international market price increase of 14.81% for petrol and diesel.
In nominal terms, it said petrol price will increase by about 10% to sell above ¢ 11 per liter and diesel by about 15% to sell above ¢14 per liter.
Price of Liquified Petroleum Gas (LPG) however was projected to fall further by 5% from its current price.
Meanwhile, the market leader, GOIL, has increased the price of petroleum products at the pumps.
It went up over the weekend.
A litre of petrol is going for ¢10.99 which is in line with the current market condition.
However, diesel is going for ¢13.39 pesewas.
Based on the pricing formula for the industry, it’s clear that most of the Oil Market Companies have absorbed a fraction of the cost.
This means prices should have been more than what is presently prevailing.