Transport operators have announced an imminent increase in transport fares in the next few days.

According to the Ghana Road Transport Coordinating Council (GRTCC), the public is informed to brace themselves for a 20% increase in public transport fares, effective Friday, August 8, 2025.

During an interview on Adom News on Monday, August 4, the General Secretary of the GRTCC, Emmanuel Ohene-Yeboah, affirmed the decision, adding that his outfit will issue an official press release soon.

Mr Emmanuel Ohene-Yeboah attributed the proposed fare adjustment to the hike in operational costs faced by transport operators.

Referring to the recent implementation of the GH₵1 Energy Sector Levy on Wednesday, July 16, the General Secretary of the GRTCC, mentioned that as a key contributory factor to the impending increase.

He said the levy has caused an increase in expenses such as fuel, spare parts, and vehicle maintenance.

“The introduction of the GH₵1 Energy Sector Levy has significantly increased our operational costs—fuel, spare parts, and maintenance are all more expensive now. This has made it necessary for us to adjust fares to keep the transport business running,” he stated.

He urged the public to accept the fare increase, explaining that it is necessary to keep transport businesses operational. He noted that the union had previously responded positively to the government's call to reduce fares when fuel prices dropped and the cedi strengthened, hoping it would lead to lower operating costs. However, they are now facing even greater challenges

“This decision should not come as a surprise to the public. In May, we responded to government’s request to reduce fares, anticipating a decrease in the cost of doing business. Unfortunately, the situation has worsened instead,” Mr. Ohene-Yeboah explained.

He stressed that transport unions are equally burdened and appealed to the public to remain calm and cooperate with the new fare structure.

“Maintenance costs are overwhelming and are significantly affecting our operations. Without this increase, the transport business will suffer greatly,” he added, noting that the decision was made in consultation with other major transport unions.

Meanwhile, the 20% fare increment is expected to be effected by all categories of public transportation, such as taxis, intra-city “trotro” services, intercity long-distance buses, and haulage trucks.

In mid-July, the Coalition of Commercial Transport Operators threatened to increase transport fares by 30% should the government proceed with its GH¢1.00 per litre fuel levy.

The implementation of the new GHS1 Energy Sector Shortfall and Debt Repayment Levy on petroleum products commenced on Wednesday, July 16.

Speaking to the media on Monday, July 14, the Chairman of the Ghana Committed Drivers Association, Charles Danso, emphasized that the fare increase will take effect on Wednesday, July 16.

According to him, this will ensure that the cost of the tax is distributed between drivers and commuters.

The association has described the levy as “reckless and retrogressive,” intended to derail their business.

“This is not just a GH¢1 tax. We are already paying a 17.2% tax component on electricity, which includes drivers. Now the government wants to impose another levy on fuel—it’s unbearable.

“If the government refuses to listen to us, we will have no option but to pass the cost onto commuters by increasing fares by 30%,” he said.

Meanwhile, the Ghana Revenue Authority (GRA)has directed all petroleum sector stakeholders to comply strictly with the new rates.

This move comes under the Energy Sector Levies (Amendment) Act, 2025 (Act 1141), which was assented to by President John Dramani Mahama on June 5 to settle energy sector shortfalls, reduce legacy debts, and stabilize power supply across the country, following parliamentary approval.

GRA had announced earlier implementation of the levy; however, it was postponed after strong opposition from oil marketing companies.

Initially set to take effect on Monday, June 9, it was rescheduled to start on Monday, June 16. It was then rescheduled again due to the tensions between Iran and Israel.

According to Tariff Interpretation Order (TIO) No. 2025/003, issued by the GRA, the new levy affects several key fuel products.

The levy on petrol (motor spirit, super) and diesel (gas oil) will rise from GHS0.95 and GHS0.93 respectively, to GHS1.95 and GHS1.93 per litre.

Marine gas oil (local) will increase from 0.3 to 0.23, Marine gas oil(foreign) from 0.93 to 1.93, and heavy fuel oil 0.04.

Petroleum products lifted before June 9, 2025, will be charged the old levy rates.

However, all cash-and-carry transactions where products are lifted on or after the effective date will attract the revised levies.

The government insists the levy is crucial for the financial recovery of Ghana’s energy sector. President John Mahama, while speaking at the presentation of the final report of the National Economic Dialogue 2025 on June 4, announced the government's decision to clear the accumulated legacy debts in the power sector with part of the revenue generated by the yet-to-be-implemented levy.

Before the implementation of the fuel levy, the government urged the transport operators to reduce fares due to the appreciation of the cedi, coupled with its effect on economic business transactions.

Around May 20, GPRTU announced that commuters are to expect a 15% drop in transport fares, effective Saturday, May 24.

This was made known by the Industrial Relations Officer of the Ghana Private Road Transport Union (GPRTU), Abass Imoro, while speaking to the media.“We have finally agreed to reduce lorry fares by 15%, but it will take effect from Saturday. Although currently, spare parts sellers have promised to reduce some of their prices for now, which hasn’t taken effect, and none of the lubricants that went up have been reduced currently, but we decided to peg the reduction at 15%,” he added.

The reduction followed successful deliberations between the Ministry of Transport and transport operators.

Other factors include the recent macroeconomic developments, specifically the Ghanaian cedi experiencing sustained appreciation against the US dollar.

As of May 13, the Ghana cedi appreciated by 16.7% against the US dollar, making it the world’s best-performing currency so far this year.

However, Minister for Finance Dr. Cassiel Ato Forson, has cited stringent monetary policy, complemented by aggressive liquidity sterilization, and disciplined fiscal stance anchored around prudent public finance management.

"In fact, our foreign exchange reserves at the Bank of Ghana reached a record high in April 2025, surpassing targets set under the IMF-supported programme ahead of schedule," he added.