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The Ministry of Transport is scheduled to hold crunch talks with commercial transport operators following concerns over the alleged deliberate creation of scarcity in the sector to hike fares.
The Minister of Government Communications, Felix Kwakye Ofosu, disclosed this when he took his turn at the Government Accountability Series briefing to the media in Accra yesterday.
The meeting will also discuss general transport fares in the wake of the recent consistent fuel price reductions.
Commercial transport operators have used fuel price hikes as justification for fare increments in the past, but have not responded to the periodic and consistent reduction in prices with similar zeal.
In recent times, they have cited the cost of automobile spare parts for maintaining current transport fares, which they last reduced by 15 per cent in May 2025, a first-time occurrence in many years.
Economic gains
During the engagement, Mr Kwakye Ofosu also rejected assertions that recent macroeconomic improvements had failed to impact the daily lives of ordinary citizens.
He instead pointed to consistent reductions in fuel prices as “clear and verifiable evidence” of lowered living costs.
“It is incorrect to suggest that the positive macroeconomic indicators are not translating into tangible benefits for the people,” the minister stated.
“The reduction in prices of fuel at the pumps is a direct counterexample, putting money back into the pockets of households and businesses,” he added.
The minister, however, indicated that the primary focus of the upcoming meeting with transport operators was to address what the government viewed as rent-seeking behaviour.
He alleged that some operators were limiting the availability of vehicles to artificially hike fares, despite the government’s interventions to reduce their operational costs.
These interventions, he indicated, included the recent reductions in the price of fuel and the removal of import duties on selected spare parts.
“We have had some reductions in the prices of fuel; we have removed import duties on the import of spare parts, all in a bid to cushion the transport sector and, by extension, the riding public,” Mr Kwakye Ofosu said.
“However, we are getting reports and complaints that some operators are engaging in rent-seeking by not making vehicles available so that they can create artificial scarcity and keep fares up,” he added.
The government’s meeting with transport operators is expected to foster dialogue on ensuring that benefits from the government’s relief measures are passed on to commuters through corresponding adjustments in transport fares.
Mr Kwakye Ofosu said a detailed analysis from the Ministry of Finance had established a direct and significant correlation between exchange rate movements and receipts from customs duties.
The report indicates that the recent appreciation of the Ghana cedi, while lowering costs for importers, has concurrently led to substantial reductions in potential government revenue from identical import transactions.
According to the findings, because customs duties are calculated and assessed in United States dollar terms, the final revenue collected in Ghana cedis is wholly dependent on the exchange rate at the point of clearance.
A stronger cedi, therefore, translates into a lower cedi yield for the state, even when the volume and foreign currency value of imports remain unchanged.
The analysis presented compelling comparative data from 2025.
For instance, a 2024 Toyota Corolla saloon car cleared in April — when the exchange rate averaged GH¢15.4677 to the dollar — attracted a duty of GH¢119,778.99.
Had the same vehicle been cleared in June at an average rate of GH¢10.3052, the duty payable would have plummeted to GH¢79,801.55, representing a potential difference of GH¢39,977.44.
The trend was even more pronounced for higher-value items.
A 2025 Toyota Land Cruiser Prado processed in April generated GH¢260,100.51 in duty charges.
Under the June exchange rate, the duty would have been GH¢173,289.36 — a shortfall of GH¢86,811.15.
The impact extends beyond vehicles to bulk commodities and food imports.
A 60,000 metric-tonne consignment of clinker that yielded GH¢16.03 million in April would have generated only GH¢10.68 million in June, a difference of over GH¢5.35 million.
Similarly, a shipment of Chicken Upper Backs that paid GH¢985,076.40 in duty in April would have contributed just GH¢707,271.57 in December, indicating a difference of GH¢277,804.83.
“This analysis clearly illustrates a critical fiscal reality.
Exchange rate stability is paramount for predictable revenue forecasting and collection.
While a strong cedi is a positive economic signal with benefits for the private sector, its rapid appreciation can pose a challenge to meeting revenue targets,” the minister said.
Mr Kwakye Ofosu further stated that the government was keenly aware of this dynamic, and was committed to strengthening revenue mobilisation efforts to build resilience against such external volatilities.
The minister said the government had, in recent months, implemented several policies aimed at alleviating cost pressures on transport operators.
Being the first of the Accountability Series for the year, he touched on other government initiatives that had contributed to what he described as a year of progress.
These included the fight against illegal mining, commonly called galamsey, and infrastructure development through the Big Push Programme, among others.
