Economist Dr Boachie-Yiadom has described the proposed 30% increase in transport fares as excessive, arguing that the adjustment should have been introduced gradually to cushion consumers from the economic impact.
He said while he understands the pressure created by rising fuel prices and acknowledges that the Ghana Private Road Transport Union (GPRTU) had sought to increase transport fares since August, he disagrees with the rate at which the increment is being implemented.
Speaking on Business Focus on September 8, Dr Boachie-Yiadom said a 30% jump in transport fares would place an undue burden on consumers.
“Changing the transport fares at a jump of 30% is too high. They should have done it in a gradual process,” he said.
According to the economist, the timing of the increase is particularly concerning, especially as schools have reopened and many households are already facing increased financial obligations.
He therefore proposed that the increment be introduced in two phases, rather than implemented at once.
“They should split it into 15% this window and 15% in the next window,” he suggested.
Dr Boachie-Yiadom said a sharp increase in transport fares would have ripple effects across the economy, as higher transportation costs could translate into increased prices of goods and services.
From a consumer and household perspective, he warned that the 30% increment could significantly worsen the financial pressures faced by Ghanaians who rely heavily on public transport.
“This will hugely affect consumers and those who use the transport services,” he said.
By Ishmael Oduro-Acheampong
