COPEC pushes for formula to fix public transport fares

The Chamber of Petroleum Consumers (COPEC) has urged a paradigm shift in how the country determines adjustments to public transport fares, advocating for a transparent, data-driven framework to replace the current negotiation-based system between transport unions and the Ministry of Transport.

The call follows the Ghana Road Transport Coordinating Council’s recent announcement of a planned 20 percent increase in transport fares, which it justified by citing persistent high costs of goods, services and spare parts, despite a 15 percent fare reduction in May 2025.

The council argued that input prices have not adjusted proportionally to justify the previous reduction, creating operational strain for commercial drivers.

Although the driver unions have since suspended the fare hike, which was set to take effect from 8 August 2025, COPEC insists that Ghana must move away from ad hoc, subjective negotiations towards a systematic, evidence-based pricing model.

Speaking in a media interview, COPEC’s Executive Secretary, Mr Duncan Amoah, described the current fare-setting approach as “outdated” and “unsustainable” in a modern economy where fuel prices and operational costs fluctuate frequently.

“Public transport fare should be scientifically driven. Not whims and wishes. Scientifically to the extent that when you come to the petroleum sector, we are able to determine the cost per litre per kilometre in-country using all the metrics that we use in calculating transport fares so that we can also publish same,” Mr Amoah stressed.

According to Mr Amoah, such a framework would involve collecting and analysing real-time data on key cost components including fuel prices, vehicle maintenance, spare parts, insurance premiums and labour costs.

These would then be translated into a transparent formula to determine fair, predictable fare adjustments that balance the needs of operators with the economic realities faced by passengers.

Proponents of the idea argue that a formula-based system, once legislated or formalised through regulations, would reduce political interference, limit labour unrest and enhance public trust in the fare-setting process.

By making the methodology public, passengers would understand the rationale for changes, and operators would gain certainty in planning their operations and investments.

The current arrangement often involves protracted negotiations between transport unions and government officials, sometimes culminating in abrupt fare increases that trigger public outcry and place further strain on household budgets. COPEC maintains that this cycle undermines economic planning and fails to reflect actual market conditions.

Mr Amoah also emphasised that transport fares should be responsive to both upward and downward movements in cost drivers.

He noted that while fuel price hikes tend to prompt immediate fare increases, reductions in fuel prices rarely result in proportionate fare cuts.

A scientific approach, he argued, would compel stakeholders to apply the same methodology in both directions, ensuring fairness and consistency.

Meanwhile, COPEC has decided to suspend its earlier plans to challenge the proposed 20 percent fare hike in court, in light of the suspension of the fare increase by the driver unions.

The organisation had previously signalled its readiness to seek legal redress to protect consumers from what it described as an “unjustified and excessive” adjustment.

Stakeholders in the country’s transport sector, including passenger advocacy groups, economists and policy think tanks, have long debated the need for reform in fare-setting mechanisms.

With volatile fuel prices, currency fluctuations and varying inflationary pressures, many believe that a rules-based, data-driven system could enhance stability in the sector.

As the conversation evolves, the Ministry of Transport is yet to formally comment on COPEC’s proposal.