The Government of Ghana has announced plans to initiate discussions with transport operators in the coming weeks to explore reducing public transport fares.
This move follows the recent decline in fuel prices, aiming to ease the financial burden on commuters and contribute to inflation control.
Deputy Finance Minister, Thomas Ampem Nyarko stated that the government sees an opportunity to pass on the benefits of falling fuel prices to consumers through reduced transportation costs.
“We are seeing that fuel prices are also going down. In the next couple of weeks, we’ll have to engage transport operators so that they will also bring down lorry fares.
“Once all these happen, it will have a positive impact on inflation, and it will help us as a country.”
Hon. Thomas Ampem Nyarko, Deputy Finance Minister
The government believes that lower transport fares will complement efforts to reduce inflation and improve the cost of living for Ghanaians.
The recent marginal reductions in fuel prices have been welcomed by both economic analysts and the commuting public.
According to the latest pricing outlook released on April 16, 2025, the average price of petrol has declined by 1.5%, with a litre now selling at GH₵14.88, while diesel has gone down by 0.3%, retailing at GH₵15.50 per litre.
Similarly, the cost of Liquefied Petroleum Gas (LPG) has seen a 0.3% drop, now priced at GH₵17.45 per kilogram.
This marks the fifth consecutive reduction in fuel prices since February 2025, driven by a combination of factors including global oil market fluctuations, a slight appreciation of the Ghanaian cedi, and stable demand patterns.
Government’s Inflation Control Strategy
Deputy Minister Nyarko linked the proposed fare adjustments to the broader objective of taming inflation, which has been a major concern in Ghana’s post-COVID economic recovery agenda.
“Once transport costs come down, we expect to see a ripple effect in the pricing of goods and services.
“This is critical for our long-term goal of reducing inflation to single digits.”
Hon. Thomas Ampem Nyarko, Deputy Finance Minister
Transport costs often influence the prices of food, goods, and services across the country, especially in markets where logistics and distribution are heavily reliant on road transport.
A reduction in fares, therefore, is expected to benefit not only commuters but also small businesses and traders.
This has sparked hope among commuters, who have been grappling with high transport fares for months. Many believe that a reduction in fares will ease the cost of living, particularly for students, low-income earners, and daily wage workers.
Meanwhile, major transport unions such as the Ghana Private Road Transport Union (GPRTU) have acknowledged the recent drop in fuel prices but have not yet committed to reducing fares, citing the need for broader consultation.
In a recent statement, a senior official of GPRTU explained that while fuel prices are an important consideration, other operational costs such as vehicle spare parts, insurance premiums, and union levies also factor into fare adjustments.
The government is expected to formally engage with the transport unions in the coming weeks to discuss a potential recalibration of transport fares. If successful, the move could set a positive precedent for responsive fare policies tied to fuel price trends.
Observers say this development underscores the need for a transparent and data-driven fare adjustment mechanism, which reflects both economic conditions and the welfare of consumers.
As Ghana navigates its economic recovery path, the government’s plan to negotiate reduced transport fares in response to falling fuel prices represents a timely and pragmatic intervention.
It highlights a growing awareness of the interconnectedness between energy pricing, inflation, and public welfare. If successful, it could usher in a new model of policy responsiveness that bridges government priorities with the everyday realities of the Ghanaian people.
READ ALSO: Politicians Warned to Back Off CJ’s Removal Process
