GOIL says rising fuel prices alone cannot justify the Ghana Private Road Transport Union’s (GPRTU) proposed 30% increase in transport fares.
Chief Executive Officer of GOIL, Edward Bawa, says other factors, including the cedi-dollar exchange rate, spare parts and insurance costs, must also be considered before fares are increased.
His comments come as global crude oil prices approach $100 per barrel, raising concerns about another increase in pump prices and its impact on transport costs.
Mr Bawa said GOIL is still assessing the situation but will seek ways to cushion consumers.
“We will get there. We’re still looking, or we’re still studying the various scenarios, still looking at what we should do, but what I can assure Ghanaians is that we will always want to be on their side,” he said.
He said the company must cover its costs but would also consider the impact of any price increases on consumers.
“Prices going up does not necessarily mean that at the pumps it will go up. It again depends on what strategy you are using. So GOIL will definitely find a way of trying to tame the market,” he said.
Mr Bawa said GPRTU’s assessment of transport fares should go beyond fuel prices.
“I understand GPRTU as a union body that the parameters considered in lorry fares are not only fuel. There is also the issue of the exchange rate because of spare parts. There’s an issue of insurance and all other things that come into it,” he said.
According to him, the recent stability of the cedi must also form part of the consideration.
“You realise that over the period, whilst prices of crude oil are going up, you have a fairly good situation within the country; you have a situation where the cedi and everything is still very fairly stable,” he said.
He therefore questioned the basis for automatically increasing fares whenever fuel prices rise.
“And so, it is unfair that anytime there’s in fuel prices, you have lorry commercial drivers at to increase,” he said.
Mr Bawa acknowledged that the Ministry of Transport works with GPRTU on fare adjustment thresholds.
He said that consideration of an increase occurs when the relevant combination of factors reaches the required threshold.
He urged GPRTU to take the broader economic picture into account.
“I think that is the reason why, and I want to believe that GPRTU also knows these factors, and maybe they could add that to it,” he said.
Mr Bawa also said GOIL has a responsibility to make it easier for transport operators to keep fares under control.
“But of course, as for GOIL, as a company, we must also be seen to be making the work of GPRTU and all other driver unions a bit easier for them to be able to insist on their drivers not to increase, having factored in when we are taking our price,” he said.
He admitted that global developments continue to create pressure for oil marketing companies.
“Anytime I see this, consistently you see that I am on my phone and the TV is on either CNN or other networks, just to see what is happening,” he said.
Mr Bawa said that geopolitical developments are a concern for oil marketing companies because of their impact on petroleum prices.
“As a provider of petroleum products to customers, you want to ensure that your customers are not overly burdened because of the pricing,” he said.
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