The Ghana Committed Drivers Association of Ghana (CDAG), a group of commercial drivers, has indicated that it will increase transport fares by 20 percent from Monday, October 29, 2018 following economic effects of recent fuel prices on drivers.
According to a report sighted by YEN.com.gh on Citinewsroom.com, chairman for the association, Charles Danso, indicated that the move had become necessary due to the constant increase in fuel prices.
The chairman of the association which is made up of hundreds of commercial drivers in the country, opined that the current price of fuel was putting members through unbearable economic challenges leaving them with no choice than to increase the fares.
“All the fuel stations are increasing the fuel prices. If we the drivers do not increase our fares too, we can’t survive. We can no longer survive. We are in a liberal economy and no one determines the price for anyone so from Monday, we are going to increase it by 20 percent,” Danso said.
The National Petroleum Authority (NPA) confirmed that fuel prices had been increased by over 2%; the second time in barely two months.
In September 2018, the price of fuel crossed the GH¢ 5 per litre mark.
According to the NPA, the latest price increase was as a result of the hike in the price of finished petroleum products on the international market, despite a fall in the price of crude on the global market.
The price of petrol and diesel is currently pegged at GH¢5.21 per litre, up from the previous price of GH¢5.07 per litre.
Policy think tank on taxation and consumer protection CUTS International, however has called on the government to reduce the special petroleum levy to give consumers some form of relief.
Executive director of CUTS International, Appiah Kusi Adomako, in an interview with Citi News, indicated that the government could help relieve consumers of the burden from the increases.
“Government can take away some of the taxes from petroleum whenever the prices go up on the world market. We asked the government to reduce the Special petroleum levy so that consumers can get some kind of relief from the high prices. Petroleum price in Ghana is very high and we need to find a sustainable way of addressing this", Adomako said
Ordinarily, fares are determined by the Ghana Road Transport Coordinating Council in conjunction with GPRTU, the Ministry of Transport and other stakeholders.
It is yet to be determined if their decision to increase fares will see the light of day.
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Source: Yen News