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Transport operators, businessmen and residents have been sharing their frustrations and displeasure at the recent increases in prices of petroleum products in the country. The effects of the increases, which appear relatively higher in recent times, already became manifest yesterday morning, when drivers and commuters clashed over how much they were expected to charge as fares for long and short distances. There were reports of altercations between conductors and passengers at Tafo, the Kwame Nkrumah University of Science and Technology (KNUST), Abuakwa and Atonsu, the four major artery roads in the city, as they failed to agree on how much was expected to be added to the existing fares. Apart from the short and medium distance commercial vehicles, commonly known as �Trotro�, which witnessed some drastic effects, large vehicle transport operators and individual businessmen have also not been left out, with many sharing their displeasure at the wanton increases of the product, without recourse to the effects on the people. When The Chronicle sampled views from some individuals and business entities in the city, it was apparent they were not happy at all with the recent increment, with some anticipating negative impacts on their respective businesses. HEDGING OF FARES The National Vice Chairman of the Commercial Drivers Association of Ghana (CDA), Alhaji Iddrissu Lawal, said they were having a tough time dealing with their clients because of the sudden increases. Alhaji Lawal noted that as has been the norm, anytime there is an increase in fuel prices, it would take a little while for commuters to come to terms with the realities and co-operate with drivers. He said, as a result of this, they were engaging in consultations with the Kumasi Metropolitan Assembly (KMA) on how to ensure that some of the little issues were dealt with, in order to facilitate vehicular movement in the city. According to him, some of the issues they would be considering would be to hedge the fares so that consumers would not have to be affected anytime there is an increment. �We are in talks with the KMA to allow us introduce a system whereby the fares can be hedged, so that passengers would not have to pay extra anytime there is an increase,� he said. Alhaji Lawal said even though they were not happy with the 15% increase in fares, considering the fact that petroleum products were increased in excess of 23%, they had no choice, but to sympathise with government, after engaging in consultations with the various stakeholders. ODIKE�S FRUSTRATIONS The Kumasi-based businessman and former presidential candidate of the United Front Party (UFP), Mr. Akwasi Addai, popularly known as �Odike�, minced no words at all when he declared his displeasure at what he said was failure of governments, both past and present, to institute pragmatic long term measures that can help cushion businesses and citizens from regular increases in the product. Mr. Odike said the increment, without doubt, could have serious effects on businesses, as it is likely to increase production costs as a result of corresponding increases in prices of goods and services. According to him, the automatic adjustment formula, the phenomenon whereby government increases prices to commensurate with increases on the world market without a comprehensive economic policy, was not the way to go for a country like Ghana, whose economy is in transition, adding that the situation only helps to deepen the pain and suffering of the people. He contends that businessmen, single parents and the vast unemployed youth in the country would continue to bear the brunt of such unsustainable policies, which would not, in any way, help solve the economic problems facing the country. Mr. Odike, who is into various businesses, including footwear and clothing, said the best solution to such a recurrent problem was for the government to lead the crusade in ensuring a paradigm shift from an import-driven economy to export-driven one. He was of the view that the best approach will be for government to identify local business entities, and empower them with tools and incentives to be able to add value to the country�s raw materials, in order to enhance the capacity of production. The former presidential candidate observed that in a country with a weak currency, but endowed with raw materials and cheap labour, it is the duty of the government to support recognised businesses and local industries to be able to engage in production and exportation, stressing that emerging economies such as Turkey, Thailand and China adopted similar policies to turn their economies around. �At this moment, businesses are being over taxed, and this puts undue pressure on them, meanwhile, there is only about 20% of business that pays taxes directly to government. I think it is about time the government started looking at widening the tax to include the other 80% in the non-formal sector,� he suggested. He noted that further that the government must also consider taxing churches and religious bodies, since, according to him, these institutions are partially responsible for the poor performance of the economy. �Churches make millions of cedis on [a] weekly basis, but they fail to pump the money into the system, and rather save them in the banks; it is estimated that churches contribute about 26 billion old cedi to savings. The best thing is for [the] government to tax them and help increase revenue,� he noted. O.A. TRANSPORT SERVICES The Transport Officer at the O.A. Bus Terminal at Asafo, Mr. Kennedy Frimpong, said the increases had created serious inconveniences to their activities, because many of their clients have had to postpone and reschedule their deals. He said, though their fares remained unchanged in the interim, as they were yet to do the necessary calculations, activities at the terminal had been very slow since the announcement. Mr. Frimpong, therefore, suggested that the government should abolish the regular adjustments, and instead, project a one-off increase, or better still just twice a year, in order to reduce the burden on the consuming public. Sunyani Wails over fuel price hike Michael Boateng also reports from Sunyani that the residents have described the recent fuel price increase, which took effect on Monday, July 14, 2014, as unnecessary, and that it had deepened their economic woes. According to some of the people, the economic situation in the country had become unbearable, as prices of goods and services keep on soaring every day, in addition to the utilities and taxes, but salaries remain unchanged. The fuel price increase has led to friction between drivers and filling station pump attendants. Mr. Eric Asante, a taxi driver, disclosed to The Chronicle that he quarreled with a pump attendant at the Eusbett Goil filling station, because the lady used a calculator to calculate the litres that would be equivalent to the GH�40 fuel he was buying. According to Mr. Asante, the machine indicated an amount of GH�32 instead of GH�40 after the fuel has been discharged into the fuel tank of the vehicle. When he demanded an explanation, the lady explained that since the machine was yet to be adjusted to correspond with the recent increase, they had been asked to use the calculator to calculate the figures. The taxi driver continued that though a quarrel ensued between him and the pump attendant, he had no option than to pay the GH�40 for GH�32 worth of petrol. A pump attendant at the Eusbet Goil Filling Station, Naomi Twenewaa, confirmed that they had been using a calculator to determine the amount of petrol sold, because the pumping machines were yet to be re-calibrated. She said though some of the drivers had problems with the use of calculators, most of them also understood and did not complain. She noted that initially, a gallon of petrol (4.5 litres), which was sold at GH�12.28 is now GH�15.12. A gallon of diesel has also shot up from GH�12.06 to GH�14.72, and the drivers have been crying over the price increase. A cold store operator, Madam Hannah Serwaa, complained bitterly about the fuel price increase, alluding to the fact that last week she purchased a box of frozen fish for GH�57, and yesterday, that same box of fish was sold at GH�67. Her transportation fare has also increased from GH�1.20 to GH�1.50. Mr. Baafi Omane Marfo of the Latex Foam Showroom in Sunyani revealed that with the increase in fuel prices, the manufacturers had hinted of a 10% increase in the price of products, from July 21, 2014. According to him, if the July 21, 2014 increase comes on, it would mean that from January to July this year, Latex Foam has increased the prices of its products five times. This, he noted, had affected sales, but there was nothing they could do. Mr. Kwasi Boateng, a broadcaster at Space FM in Sunyani, noted that the whole issue of government subsidising and placing taxes on fuel is confusing, asking �how can you subsidise something and have a huge percentage of taxes on that same thing.� He suggested that the government should waive the taxes on fuel and stop the so-called subsidy on them, because it does not sound well in the ears of consumers. Ho Correspondent Samuel Agbewode reports from the Volta Regional capital, Ho, that the announcement of an increment in fuel prices, and its subsequent transport fare increment in the Ho Municipality, had angered business operators and drivers, as some of them called on President John Dramani Mahama to resign. A businesswoman, Madam Delali Amedume, said the current development in the country was a clear sign of poor leadership, and that the economic situation of the country continues to deteriorate. Madam Amedume pointed out that the cost of living was becoming so high, to the extent that many people found it extremely difficult to feed themselves three times a day. Businesses are also collapsing, she said, noting that the increase in fuel prices had worsened the situation. She continued that with the increase in fuel prices, businessmen and women like her would have to increase the prices of their items to accommodate the increase in transport fares, a development, she said, would not only affect businesses, but also the ordinary person who transacts business or purchases items that would make him or her live a meaningful life. Madam Amedume said the President and the NDC government had failed Ghanaians, adding that the President talks too much by giving promises that are never fulfilled, and advised that the President should let such talk reflect positively in the lives of the people. Touching on the frequent fuel increases, she suggested that the government should establish its own refinery to process the oil found in Ghana, rather than allow it to be processed outside the country and resold at an expensive rate to the nation. The drivers, including businessmen and women who spoke under condition of anonymity, stressed that the nation had fallen apart, as everything was going out of hand, as if there was no leader to put things right. They alleged that the majority of the people were suffering, whilst the few people in government were enjoying, noting that they regretted voting for the ruling NDC. �From morning up to this time, I am still at the station, because there are no passengers due to the petrol increase and subsequent increment in lorry fares,� one of the drivers told The Chronicle. They observed that the difficult economic hardship experienced in the 80s seemed to be repeating itself. The drivers regretted that henceforth they would charge every piece of baggage carried by passengers, just as was the case in the 1980s when passengers had to put stones in their bags as luggage before getting access to vehicles. They continued that the high cost in electricity and water bills, coupled with the increase in fuel prices and lorry fares, were enough signal to the President that he had disappointed the people. A taxi driver, Mr. Ade Williams, said business for the day had been so bad that he would not be able to make sales, because all he would make would be used to purchase fuel. According to him, because passengers within the Ho township were aware of the increment, many of them had decided to walk, instead of boarding a taxi. The Volta Regional Chairman of the Ghana Private Road Transport Union (GPRTU), Mr. Moses Davor, cautioned drivers against charging unapproved fares, and advised that any driver in doubt about the new fare from Ho to Accra, or any part of the country, should consult the nearest GPRTU office. More condemnation greets fuel price hikes Masahudu Kunateh reports in Accra that Ghanaians, especially businesses, are still not coming into turns with the 23% increase in fuel prices announced by the National Petroleum Authority (NPA) over the weekend. The unpopular announcement has caused more harm than good in the country. The fuel increment has automatically led to the hike in prices of goods and services. Already, the Ghana Road Transport Coordinating Council (GRTCC) announced a 20% increment in transport fares, citing the increment in petroleum products. The majority of Ghanaians and some businesses expressed their disappointment at the government over the increments. According to them, the increment would further aggravate the hardship that they are going through. �How can you increase fuel prices and taxes without corresponding increase in salaries,� Ebenezer Owusu, a public servant, quizzed. He lamented that �living in Ghana now is very hard, and the situation is very bad, and we need to survive. The government must do something to save the people from being consumed by the current economic challenges.� A mobile phone owner at the Kwame Nkrumah Circle, Accra, Ismael Ali, also lamented that the recent increment in utility tariffs, coupled with the hikes in fuel prices and transport fares, would collapse most small and medium scale businesses in the country. Adding his voice to the sentiments expressed above, a former Chief Executive Officer (CEO) of the Volta River Authority (VRA), Dr. Charles Wereko Brobbey, added that the hardship Ghanaians were experiencing under the Mahama-led administration was now unbearable. �Protecting the price of fuel is the most sensitive decision any government could take,� he told a local radio station. Dr. Wereko Brobbey wondered why the �suffering� Ghanaian rather pays higher utilities than the average American. �The people of Ghana who earn way less than the minimum wage pay more than the average American. How is that possible? ��if international prices of fuel are going down, prices should go down here [in Ghana]. The mechanisms set up are not working as they should. Why do we have to pay for the inefficiency of TOR, BOST, etc,� he decried. However, the National Petroleum Authority (NPA), under whose ambit fuel prices continue to surge, attributed the recent increment to the removal of the fuel subsidies, the prices of crude oil on the international market, and the depreciation of the Ghana cedi. �Since the government is no longer subsidising the price of petroleum products, consumers would have to pay the full cost,� the Public Relations Officer of the NPA, Yaro Kasambata, told Citi Breakfast Show yesterday. He explained that the irregular payment of fuel subsidies by the government in times past �was choking the industry�and there was this idea that let the price go, so that the banks will feel the confidence they need, so that Letters of Credit (LC) will be honoured by Bulk Oil Distribution Companies (BDCs).� According to Mr. Kasambata, the NPA determines the timing for an increment or otherwise, based on the government�s decision to intervene. �The government has the greater picture at any time, and if tomorrow, it feels strongly that it needs to give a pesewa relief on each and every individual, and they have the money to pay, we, as an authority, or even the industry, will not say no to it,� he said. Two weeks ago, the NPA indicated it was going to increase the price of petroleum products after a shortage of the products hit the various parts of the country. The shortage was due to the government�s indebtedness to the BDCs. The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) recently warned the weakening of business and consumer confidence, energy sector constraints, and rising input costs all posing downside risks to growth outlook. Headline inflation, although, has slowed on a month-on-month basis, but continues to drift further away from the target band, underpinned by cost-push factors, alongside heightened inflation expectations by businesses and the financial sector. The persisting fiscal and exchange rate pressures have provided additional impetus to the worsening inflation outlook. Other risks related to the inflation outlook include the recent rapid growth in monetary aggregates such as credit to the private sector and money supply. The bank�s latest inflation forecasts, which factor in possible petroleum price increases and liquidity conditions, show that barring any significant shocks, inflation is likely to return to the target range of 9.5�2% by the last quarter of 2015. On the balance, therefore, the committee viewed risks to inflation as elevated and decided to increase the policy rate by 100 basis points to 19 percent to contain inflation pressures, and realign interest rates in favour of domestic assets. However, economists noted that with the recent increment of fuel prices, it would be difficult to contain the inflationary pressures in the country.