30% transport fare hike reflects failure of state policy – Benjamin Nsiah

Energy expert Benjamin Nsiah has criticised Ghana’s transport pricing system, describing the possible 30% increase in fares proposed by transport operators as a sign of deeper policy failures.
The Ghana Private Road Transport Union (GPRTU) has warned that fares could rise by 30% due to increasing fuel prices and operational costs.

However, Nsiah said transport fare adjustments should not be based solely on fuel prices, arguing that other economic indicators must be considered before determining increases.
Speaking on the Asaase Breakfast Show on Tuesday (28 July), he said Ghana needs a transparent formula that considers factors such as inflation, exchange rates, interest rates and vehicle import costs.
“Anytime fuel prices increase by 10%, they are also allowed to increase their transport fares by 10%. A responsible state that wants to take care of its communities will now look at the whole regime and say, what entails the cost of operations of a transport business?” he said.

He said a proper framework would ensure that fare adjustments reflect the actual cost of running commercial transport businesses rather than reacting to fuel price changes alone.
According to him, if fuel prices rise while other indicators such as inflation, vehicle financing costs or exchange rates improve, transport fares should not automatically increase.

“You commit all these factors, it may say that transport operators don’t deserve 30%, they deserve maybe 1% or 2%, based on weighting the various indicators,” he said.
Mr Nsiah blamed successive governments for failing to establish a regulated transport pricing system that provides certainty for both operators and passengers.
“I think whether they are justified or not justified, it is a failure of the state to establish protocols or legalise established protocols in determining transport fares,” he said.
He also criticised delays by oil marketing companies and bulk distribution companies in reducing prices when global market conditions improve.

Nsiah urged the National Petroleum Authority (NPA) to strengthen its regulatory role and ensure petroleum pricing decisions are fair to both consumers and businesses.