Tuesday, July 28, 2026
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HomenewsTransport unions, government lock horns over 30% fare hike as fuel prices...

Transport unions, government lock horns over 30% fare hike as fuel prices hit GHC18/litre

A critical meeting is underway today between transport operators and the Ministry of Transport to deliberate on a proposed 30% increment in public transport fares, as the sector teeters under the weight of skyrocketing fuel costs and a sharp rise in vehicle maintenance expenses.

The talks, scheduled for Tuesday morning at the Ministry’s headquarters, come in response to mounting pressure from transport unions, particularly the Ghana Private Road Transport Union (GPRTU), which argues that current operational costs have become financially unsustainable. While the meeting is framed as a dialogue, operators have made it clear they are prepared to push for the upward adjustment if the government fails to offer immediate relief.

The Economic Squeeze Behind the Demand

Beyond the headline diesel price, which is currently approaching GH¢18 per litre, transport operators are grappling with a broader cost-of-doing-business crisis. The persistent depreciation of the Ghanaian cedi against the US dollar has inflated the price of imported vehicle spare parts by over 35% in the last six months alone. Additionally, increased tariffs on lubricants and tires have exacerbated the financial strain on commercial vehicle owners, many of whom are operating with thinning profit margins.

Speaking to Citi FM ahead of the meeting, the Deputy Public Relations Officer of GPRTU, Samuel Amoah, stressed the urgency of the situation. “If the government believes there is nothing they can do about the high cost of petroleum products, we will lay our proposed percentage—30%—on the table for negotiation. Whatever agreement we reach, we will communicate to our members,” he stated. The proposed hike, if approved, would mark one of the steepest single-period increases in recent memory, significantly affecting over 5 million daily commuters across the country.

COPEC Calls for Reinstatement of Fuel Intervention

Meanwhile, the Chamber of Petroleum Consumers (COPEC) has weighed in, urging the government to reinstate the fuel price intervention mechanism that was active during the height of the Middle East crisis. COPEC’s Executive Secretary, Duncan Amoah, recalled that the previous measure successfully reduced diesel prices by GH¢2.00 per litre and petrol by GH¢2.09 per litre, providing critical breathing room for businesses and motorists.

“We are seeing diesel prices approaching GH¢18 per litre again. Without intervention, the financial burden will cascade down to the commuter, worsening the cost-of-living crisis,” Mr. Amoah warned. He argued that the intervention would not only shield transport operators but also stabilize the prices of goods and services that rely heavily on logistics.

Government’s Dilemma

For the Ministry of Transport, the meeting presents a delicate balancing act. While officials are sympathetic to the operators’ plight, a 30% fare increase could trigger a new wave of inflationary pressure, potentially undermining the government’s recent efforts to stabilize the macroeconomy. Sources close to the Ministry suggest that officials may instead propose a staggered increase or offer a temporary subsidy on fuel taxes, though such measures would place additional strain on the national budget.

This marks the second major fare review in less than a year, following a 15% increment approved in October 2025. That hike was justified at the time by rising global crude oil prices, but operators now argue that the situation has since deteriorated further, with no respite in sight.

Public Impact and Outlook

As the meeting progresses, the Ghanaian public watches with bated breath. For traders, artisans, and office workers who rely heavily on trotro and public buses, any fare increase will cut directly into disposable incomes. Civil society groups have already begun urging the government to prioritize renewable energy initiatives and local refining capacity to reduce the country’s long-term reliance on imported petroleum products.

In the absence of a clear agreement today, the GPRTU has hinted at a possible directive for operators to halt services in protest—a move that could paralyze economic activity in major urban centers. All eyes are now on the negotiating table as both sides seek a resolution that will not leave commuters stranded or operators bankrupt.

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