Drivers urged not to increase fares after fuel price hike

petrol pump

Transport unions have directed their members not to increase transport fares following a 9% hike in some petroleum products, effective May 17, 2015.

Commercial drivers have been urged to maintain the existing fares for the rest of the month.

The call was made in a joint statement signed by the General Secretary of the Ghana Private Road Transport Union, Stephen K. Okudzeto, and General Secretary of Ghana Road Transport Co-ordinating Council, Alhaji Aliyu Baba.

“Following the recent increase in the price of petroleum products, all transport operators are being informed not to increase transport fares pending the mid-year review of transport fares, which is scheduled for June, 2015.”

The unions also said a new fare is being held off to enable them take into consideration other components that go into the running of commercial road transport services.

Petrol will now sell at GH¢3.33 per litre from the previous Gh¢3.05, while diesel which was previously sold at GH¢2.97 will be now sell at Gh¢3.24.

Liquefied Petroleum Gas (LPG) will now be sold at Gh¢2.88, up from Gh¢2.64. MGO Local, which was sold at Gh¢2.96,  is now Gh¢2.96. The price of premix fuel and RFO remain unchanged.

A statement from the Chief Executive of National Petroleum Authority, Moses Asaga said the increment was necessary to prevent fuel shortages.

“The increment is the direct result of increases in the world market price of the various commodities. Between February 2015 and now, there has been a 37% change in the price of [etrol, 26% in diesel and 43% in LPG.

Mr Asaga added: “This had led to an increasing rate of unpaid under recoveries or subsidies, amounting to about GH¢146 million, which is causing serious liquidity challenges for the Bulk Oil Distribution Companies (BDCs). If not checked, this can lead to fuel shortages at the pumps and its attendant effects on productivity.”

Credit: Myjoyonline