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Reduction in spare parts prices will not impact transport fares

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The Abossey-Okai Spare Parts Dealers Association have ruled out any reduction in transport fares due to proposed decrease in the cost of spare parts.

The vehicle spare parts dealers have announced that they may reduce the prices of their wares by between 15 and 20 percent, following a reduction in some import duties.

Some observers have argued that the proposed reduction in the price of spare parts should have been considered in the 10 percent increase in transport fares announced by the Ghana Private Road Transport Union (GPRTU).

But speaking to Citi Business News, the Acting Chairman of the Abossey-Okai Spare Parts Dealers Association, Clement Boateng, downplayed any effect on the transport fares.

“We’ve checked with three people who cleared their goods from the ports on Friday and they have testified that they have seen a reduction in the duties they pay. Once they have confirmed that it has taken effect we are going to impress on them to reduce their prices. But we should remember that spare parts form just a fraction of the components for calculating transport fares. We have other factors such as exchange rate, fuel, insurance amongst others.”

Mr. Boateng added that once such major factors are increased, the subsequent increase in transport fares becomes more imminent.

“I don’t think if they come to the market and realize that the cost of spare parts have reduced they will go back and reduce their fares. Once they have increased it, it will definitely stay.”

The increase in fares comes after an agreement between Road Transport Operators and other stakeholders in the transport sector including the government.

The National Chairman of the GPRTU, Kwame Kuma, in a Citi News interview, urged the public transport drivers to abide by the approved fares.

“It is not only the fuel. Prices of the cars, spare parts, engine oil and all that. We check all these before we come out with increment. Even at the ports, the amounts you pay. We even consider the bank’s lending rate. I’m pleading with the trotro drivers and passengers; everyone should exercise patience. We have prepared all notice and sent to the local level. If drivers don’t want to charge the new fare, it is fine, but they must not go above the 10%.”

Meanwhile, some members of the public have expressed their displeasure over the increment.

They believe the increment will put them in a dire economic challenge.

The last time transport fares were increased was in April 2017. The fares went up by 15%, and it came at the time when the government has reduced the Special petroleum tax rate from 17.5 percent to 15 percent; and also abolished duty on the importation of spare parts.

By: Bobbie Osei/citibusinessnews.com/Ghana

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