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Transport unions to introduce new model for calculating fares

The Ghana Road Transport Coordinating Council (GTRCC), the apex body of all transport unions and associations in the country is revising methods used in calculating increases in fares.

Fuel price increases have, most of often, dictated transport fare hikes in the country.

With minimal increases in fares by the National Petroleum Authority (NPA), however, the General Secretary the GTRCC, Alhaji Aliyu Baba, has asked all drivers not to increase fares pending the revision of their model, as fuel comprises only about 26 per cent of the total cost of running a vehicle.

In an interview with Graphic Online Alhaji Baba said the aim of the GTRCC, was to end the era when fuel increases demanded transport fare increases, sometimes arbitrary increases by some drivers who did not go according to announced fare increases.

A consultant had already been contracted to undertake a market survey of all other variables that go into running transportation, according to Alhaji Baba.

The survey would be used as the baseline for the new model of transport fare increases.

These, he said, included lubricants, spare parts, tyres, wages for drivers and conductors. Vehicle Income Tax (VIT) and insurance covers.

He said most of these components had in the past years been increased, some as much as 50 per cent and more.

For instance, VIT, he said, was to have been increased to about 350 per cent recently as for eight years no increases had been done.

But upon the intervention if executives of driver unions, it was pegged at a 100 per cent, with a freeze on any increases for two years.

By Caroline Boateng / Graphic.com.gh / Ghana

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