STC calls for automatic adjustment formula in fuel pricing

STC calls for automatic adjustment formula in fuel pricing

The Managing Director of the State Transport Corporation (STC), Nana Akomea has suggested a benchmark value in petroleum products for transport unions.

Mr. Akomea noted that the unstable pricing of petroleum products and the hike in prices has necessitated a call for a benchmark value to be sanctioned.

“What we are looking for is a benchmark that will say something like a 10% rise in the price of fuel will trigger let’s say a 6% rise in fares. So, there’s a 10%, 6% relationship. That’s all that we want.”

He stressed on Good Morning Ghana on Friday, 5th May 2023 when he sat as a panelist on the show that the transport business should not be compromised in any way whenever there is a change in price.

“So, the business should not depend on whether fuel is coming down or going up. The stability, and you can plan.”

He noted that the cedi devaluation has a significant impact on other components of the transportation work.

“When the cedi loses value, it’s not just fuel but spare parts. We always buy spare parts, we buy 200 brake pads at a time. You’re buying oil in drums and all of that.”

The STC boss lamented the dire consequences of the cedi devaluation on the operations of the state-run company making them spend more.

He added that being cash trapped and not having to buy these items could be detrimental to their work and take them out of business.

“In the last quarter of last year, orders that we have made and paid for, the people came back and said we had to come and pay more. Otherwise, they couldn’t supply because at the time we made the order, the cedi was…say GH¢12 since now GH¢15 and they can’t supply. And they can refund your money back to you. And so we have to look for a lot of extra money.”

Nana Akomea further lauded the government’s effort in bringing the prices of fuel down moderately and hoped it decreased more in the coming days.

By Leonora Enyonam Annoh | | Ghana

Leave a Reply

Your email address will not be published. Required fields are marked *