Abstract:
Review of fuel prices by National Petroleum Authority mostly creates stiffness between operators and commuters, as fares are usually increased beyond percentage reviews. Commuters feel cheated by drivers as a result of that. Operators are with the view that they are not treated fairly by the government as they also claim fuel prices review should not be the only fares determinant. This work explores on the other cost elements and to ascertain which cost element is dominant and should influence transport fares. The research population was drivers, Ghana Private Road and Transport Union, car owners and other transport union in Kejetia bus terminal. It was found that other cost elements such as lubricant and spare parts constitutes 23%, maintenance and repairs 23%, insurance premium 22%. It was also found out that all other cost elements constitute 68% of total operation cost of commercial transport. Recommendations are that, the interest of all stakeholders (drivers, Ghana Private Road and Transport Union, government and passengers) should be considered in commercial transport fares determination to arrive at a satisfactory fares. Also government should ensure that the cost of spares parts, tires, lubricants are subsidised so that operators can afford quality products.
