Spare Parts Prices Stable, Not Reason for Fare Increase — Abossey Okai Traders

The Abossey Okai Spare Parts Dealers Association has challenged claims by commercial transport operators that rising spare parts costs are a key reason for the planned 20 percent increase in transport fares scheduled to take effect on June 2.

According to the Association, prices of vehicle spare parts have remained stable in recent months, contrary to assertions made by the Ghana Private Road Transport Union and other transport operators.

Speaking to Citi Business News, the Association’s Head of Communications, Takyi Addo, stated that there has been no significant increase in spare parts prices across the market.

He explained that the relative stability of the Ghana cedi against major foreign currencies, particularly the US dollar, has helped maintain stable prices and reduced pressure on importers and traders.

Mr Addo argued that it is inaccurate to attribute the planned fare adjustment to increases in spare parts costs, insisting that traders in the sector have experienced improved business conditions due to recent stability in the foreign exchange market.

While acknowledging the need for continued efforts to reduce taxes and other business-related costs, he maintained that current market conditions do not justify claims of escalating spare parts prices.

The Association also commended the government's management of the economy and exchange rate, noting that the stable currency environment has contributed positively to the spare parts business.

Mr Addo urged transport operators to address any concerns about operational costs directly with the government rather than linking the proposed fare increase to spare parts prices.

The comments come as transport unions prepare to implement a 20 percent increase in public transport fares, citing rising fuel prices and other operational expenses.