Commercial Transport Operators Threaten To Increase Fares By 20%, Demands Scrapping Of Petroleum, Other Taxes

• Coalition of Transport Union and Association, a union of commercial drivers, has served a 2-week ultimatum to raise transport unless the government scraps taxes on a litre of fuel
• The union says it intends to increase transport fares by 20% to make up for the constant fuel price increases at the pumps
• Since last year, fuel prices have been rising constantly partly due to the depreciation of the cedi against the US dollar and other trading currencies

Commercial drivers have threatened to increase transport fares by 20% in two weeks unless the government scraps all the taxes charged on a litre of fuel.

Currently, there are about seven taxes charged on a litre of fuel. They include the Energy Fund levy, Sanitation and pollution levy, price stabilisation and recovery levy, and the energy sector levy. These make up to 190 pessewas charged on a litre of petrol, diesel or LPG.

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The fees charged for each levy are as follows:

Energy Fund levy - 1p;

Sanitation and pollution levy - 10p;

Price stabilisation and recovery levy - 16; and

Energy sector levy - 20p.

For many months, there have been calls on the government to scrap the taxes that have become a nuisance.

According to the Coalition of Transport Union and Association since 2021, it has been appealing to the government to help lessen the financial constraints caused by rising fuel prices but without success. The Coalition says the time to act is now.

The union told Citi News during an interview that if the taxes are not scrapped within two weeks, its members will increase fares by 20%.

The PRO for the union explained that members are convinced that the taxes are not serving their intended purposes.

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"We started this some time ago in June 2021 when we wrote to the government, and it sent ministers to us. We deliberated, and we know that the price stabilization and recovery levy is no longer working, the energy sector levy is no longer working, the sanitation and pollution levy is no longer working, and we have issued a statement to that effect, but we are not seeing anything," he said.

He stated that the planned 20% increase in transport fares will ultimately restore some of their eroded profits because it will reduce the impact of the constant pump price increases.

Since August 1, 2023, the prices of petrol and diesel have increased by 9%, while petrol has gone up by about 20%.

The fuel pricing in Ghana is strongly linked to the economy and general living conditions. When fuel prices go up, food and everything else record a surge in price.

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This has resulted in the observed constant bi-weekly fuel price increases which has remained a worry for many experts.

Electricity bills increased again, 4.22% this time

Meanwhile, YEN.com.gh has reported in a separate story that the Public Utilities Regulatory Commission has raised electricity tariffs by 4.22% for average consumers.

The commission has also raised water tariffs by a marginal 1.18% for most consumers.

Residential consumers who consume utilities the least will not be affected by the tariff hikes.

Source: YEN.com.gh