The sudden rise in fuel prices at the pumps has heightened speculations of possible transport fare increases in the country as key stakeholders in the transport sector seek solutions to address the situation.
In recent times, Global crude oil prices have surged sharply from about $86 to around $109–110 per barrel — an increase of roughly 27 per cent, primarily due to tensions and supply disruptions in the Middle East.
The global shock had a direct impact on fuel prices locally, with LPG rising by 37 per cent, diesel by 28 per cent and petrol by 24 per cent.
Reaction
Reacting to the latest development, the Ghana Private Road Transport Union (GPRTU) has hinted at a likely upward adjustment in transport fares to ease the burden on transport operators across the country.
The Deputy General Secretary (Administration) of the GPRTU, Isaac Esau, who dropped the hint last Wednesday, indicated that transport fare adjustments were being considered due to the sudden rise in fuel prices beyond the agreed threshold.
For now, he said, the union was awaiting an official meeting with the Ministry of Transport, where all factors, including the current threshold levels, would be reviewed to determine the way forward.
Structured mechanism
Speaking in an exclusive interview with the Daily Graphic, Mr Esau explained that lorry fare increases were not automatic but were guided by a structured mechanism involving a threshold.
He said once fuel prices exceed this benchmark, the Ministry of Transport would convene a meeting with stakeholders to negotiate possible adjustments.
Mr Esau emphasised that the union could not unilaterally increase fares, stressing the importance of dialogue and consensus with the government and other stakeholders before any decision was made.
He added that, beyond fuel prices, other cost components, such as spare parts, also influenced fare adjustments, and these were carefully assessed before negotiations.
He further highlighted the cautious approach of transport operators, acknowledging the broader economic impact of fare increases on the public and the risk of triggering price hikes across other sectors.
He reiterated that transport operators were mindful of their critical role in the economy and the need to avoid destabilising the system.
COMAC warning
Meanwhile, the Chamber of Oil Marketing Companies (COMAC) has cautioned that the country was likely to experience a significant increase in fuel prices, driven largely by external global factors rather than domestic conditions.
The Director of Policy and Regulation at COMAC, Mohammed Issah, said while the Ghana cedi experienced only a marginal depreciation of about one per cent against the US dollar during the period, this had provided little relief against the sharp rise in global oil prices.
He said the depreciation itself was linked to increased demand for foreign exchange, higher liquidity and rising import costs.
He stressed that projected local fuel prices reflected that trend, with petrol expected to increase by about eight per cent, diesel by around 10 per cent, while LPG prices remained relatively stable due to prior procurement arrangements that locked in lower prices.
“LPG is down because NPA normally has a tender process, which they run monthly. And so we were lucky to lock in some LPG before this window. It helped in keeping the price very low. So, credit purchase prices are slightly higher across the board.”
“NPA floor prices reflect an even steeper year-on-year increase. Petrol is at 13.30, which is 14.95 per cent. Diesel is at 17.1 per cent, which is about 19.16 per cent year on year and kerosene at 17.11 per cent is 23 per cent year on year. LPG flow remains relatively stable at 0.4 per cent increment,” he stated.
High pump prices
Mr Issah emphasised that the anticipated rise in pump prices was almost entirely externally driven, stemming from geopolitical tensions, supply chain disruptions and global market constraints.
“So the bottom line here is that the chamber sees significant upward pressure on pump prices this window, almost entirely externally driven by the Middle East conflict, the homeless disruptions, and global supply constraints,” he said.
NPA assurance
The National Petroleum Authority (NPA), the regulator of the country’s downstream petroleum industry, has clarified that the recent price increases are due to the sharp rise in global crude oil prices, factors beyond the Authority’s control.
The Director of Economic Regulation and Planning at the NPA, Abass Ibrahim Tasunti, said the Authority was liaising with oil marketing companies to prevent unjustified price hikes that could unduly burden consumers.
He expressed the hope that peace would prevail in the Middle East, leading to stabilisation in global crude prices and consequently, local fuel prices.
Source:
www.graphic.com.gh