The Ministry of Transport is set to hold critical talks with commercial transport operators amid growing concerns that some players in the sector are deliberately creating vehicle shortages to justify higher fares.
The Minister of State for Government Communication, Felix Kwakye Ofosu, disclosed this on Wednesday in Accra while addressing the media as part of the Government Accountability Series.
According to him, the meeting will also take a fresh look at transport fares, especially in light of the steady reduction in fuel prices in recent months. While operators have traditionally cited fuel price hikes to justify fare increases, similar reductions have not followed the recent and consistent drop in prices at the pumps.
In recent years, operators have instead pointed to the rising cost of spare parts to defend current fares. The last fare adjustment—a 15 per cent reduction in May 2025—was notable, as it marked the first cut in many years.
Economic gains
Mr Kwakye Ofosu also pushed back against claims that recent macroeconomic improvements have not made a difference in the lives of ordinary Ghanaians. He argued that falling fuel prices are clear, tangible proof that living costs are easing.
“It is incorrect to suggest that positive macroeconomic indicators are not translating into real benefits for the people,” he said. “The consistent reduction in fuel prices is clear and verifiable evidence that households and businesses are spending less.”
Focus on the transport sector
However, he stressed that the upcoming engagement with transport operators is primarily aimed at addressing what the government sees as rent-seeking behaviour within the sector.
Mr Kwakye Ofosu alleged that some operators are deliberately limiting the number of vehicles on the road to create artificial scarcity and keep fares high, despite government measures to lower their operating costs.
“We have reduced fuel prices and removed import duties on selected spare parts to cushion the transport sector and, by extension, commuters,” he said. “Yet we continue to receive complaints that some operators are withholding vehicles to sustain high fares.”
The government expects the talks to open space for frank dialogue and ensure that the relief measures it has introduced translate into fairer transport fares for the public.
Cedi appreciation and revenue impact
The minister also shared insights from a Ministry of Finance analysis showing a strong link between exchange rate movements and customs revenue.
According to the report, while the recent appreciation of the Ghana cedi has reduced costs for importers, it has also led to a decline in government revenue from customs duties. Since duties are assessed in US dollars but collected in cedis, a stronger local currency means the state earns less in cedi terms, even when import volumes remain unchanged.
To illustrate, a 2024 Toyota Corolla cleared in April—when the exchange rate averaged GH¢15.47 to the dollar—attracted duty of about GH¢119,779. If cleared in June, when the rate had strengthened to around GH¢10.31, the duty would have dropped to roughly GH¢79,802, a difference of nearly GH¢40,000.
The impact is even sharper for higher-value imports. A 2025 Toyota Land Cruiser Prado that generated GH¢260,100 in duties in April would have yielded just over GH¢173,000 under the June exchange rate—a shortfall of more than GH¢86,000.
Similar trends were observed in bulk imports. A 60,000-metric-tonne shipment of clinker that brought in GH¢16.03 million in April would have generated only GH¢10.68 million in June. Likewise, a consignment of chicken upper backs that paid nearly GH¢985,000 in April would have contributed about GH¢707,000 in December.
“This analysis highlights a critical fiscal reality,” Mr Kwakye Ofosu said. “Exchange rate stability is essential for predictable revenue collection. While a strong cedi is good news for the private sector, rapid appreciation can make it harder to meet revenue targets.”
He added that the government is mindful of these challenges and is working to strengthen revenue mobilisation to better withstand such fluctuations.
Other issues
As this marked the first Government Accountability Series briefing of the year, the minister also touched on other initiatives he described as signs of steady progress. These include intensified efforts to curb illegal mining, known locally as galamsey, and ongoing infrastructure development under the Big Push Programme.