Transport Consultant, Cecil Garbrah is requesting for a marginal increase in transport fares in the country. According to him, “5 percent ideally is the best for now” when transport increment comes to play.

Commenting on calls by transport operators to increase fares, he intimated that the National Petroleum Authority can do more by reducing fuel prices.

“Well, I think it is time to have a workable formula to be used at least twice a year to reduce the fuel increment issues. This will also take care of future fluctuations of fuel prices.

“When fuel prices rise in our country, it becomes a very big issue. It can be a drag on the economy and [impact] everything. Of course, most companies will not increase salaries due to the pandemic. I mean we all know it is really difficult at this particular time to even pay your own salaries. Three months, six months, most companies are still owing their staff [and] their staff understand what is really going on”.

Economic impact of fuel prices increments

Recounting the economic impact of fuel prices hike, Mr. Garbrah noted that the pandemic has also exacerbated the situation.

Additionally, he explained that, fuel increment will inadvertently trickle down to the prices of goods in the country.

“Government is suffering from bringing back the economy; I mean it’s all over, not only Ghana [but] everywhere. To stand on its feet is a big problem because in our country, the sad news is that when fuel prices are increased even by a pesewa, it affects everybody.

“If you go to buy spare parts, the spare parts dealer will tell you the fuel increment has affected them. However, some of them even have their old stock but they’ll take advantage and increase it. This goes a long way to affect the ordinary person who is walking down the street. So, I think even with the 5 pesewas, government should do something else to absorb this fuel increment. We all know we are suffering… but something must really be done”.

Governmental should absorb fuel increment

To address the issue, Mr. Garbrah suggested government should absorb the fuel price increment in order to stabilize the economy.

He further advised government and transport operators to reach a consensus on the possible transport increment.

“I trust government will cushion the economy by most probably looking at absorbing the increment. Because this is not going to help us at all. It’s going to affect businesses and there’s no pay rise in every in any situation, the situation is really difficult.

“At the moment, it’s a fifty-fifty concern. Once the transport owners are also asking for an increment, government is also looking at not understanding. We should agree and get the economy moving. However, I am saying for a fact that if we come back and look at the situation where we have formula for working this increment, at least twice a year we would not have any meeting. I believe the meetings, people are going to be paid, allowances and so on, that’s also affecting the economy”.