If you are a public transport user, your budget for transportation is expected to increase by at least 15% starting on Friday, November 1, 2024.
This increase could have been 25% but the Concerned Drivers Association says they are benevolent and considerate of the plight of Ghanaians hence the 15%.
The Association says the rising cost of operating transport businesses in the country has necessitated this 15% increase in the transport fares. Unlike the previous increments when the soaring prices of fuel were the main determining factor, the Concerned Drivers Association says this time the cost of fuel is the least of their problems.
The association maintains that some cost components in the transport businesses such as vehicle servicing, lubricants spare parts, and stationery have recently recorded an astronomical increase.
David Agboado, the Public Relations Officer of the Association argues that the rate of increase in these cost components falls within their framework for increasing transport fares. He further explains that considering the surge in their cost of operations, per their formulae, the fares should be adjusted by 25%. However, the association says they are considerate and hence the decision to implement 15%.
“Cost of Servicing vehicles or the cost of running transport now is very high and that is the formulae within which we always increase transport fares. All the things over there are very positive. When you go to lubricants, it is 110%. When you go to spare parts, it is over 200+%. When you go to the stationery, it is 30%. When you go to the cost of the car, it is over 1000%. The lowest among them is the fuel. It is 8%,” he explained.
David Agboado further noted that “if you put all these together and you want to go by the percentage, we should have been charging 25% but we have thought it wise that things are not normal and we are in elections year, we don’t want to jeopardize the situation that is why we are coming out with 15%.”
This expected increase, the association says will affect all transportation including taxi, trotro, intercity, long-distance, cargo, and all others.
Transport increments normally have a ripple effect on the entire economy. Should this increment be implemented, it is likely that the cost of goods and services will also increase leading to a surge in the cost of living.
