Air Fare Decrease, Car Fares Increase; Govt Cant Be left Out But Nana Addo Has Ghana At Heart
Government taxes on Electricity bill have been removed so a reduction in Electricity bills should be expected soon.
Since the current pricing of Fuel is under the deregulation policy, it takes out the direct influence of the pricing of fuel by government, actually there is an independent committee which reviews the price of fuel every two weeks, it is under the supervision of government though. But yet still, effects of pricing can't be fully taken off government's shoulder because it still has an indirect influence in the determination of its price through the management of the Cedi and imposition of taxes.
Note, under the deregulation policy, the price of the fuel is automatic with its major factors being Price of crude oil on world market and the strength of the Cedi especially against the dollar, and it's minor factors being taxes imposed by government and other generational costs.
A government as a result can not be indirectly left out with its blame of either an increase or decrease, because of the taxes and also its responsibility for the Cedi's management.
Like in this case, the price of crude oil on the world market has been stable and sometimes decreasing, and so getting the whole blame of this increment on government.
Note, the price of fuel directly affects transport fares(air, rail and vehicle, motor etc).
But Nana addo has Ghana at heart especially because of his knowledge that a high fuel price has a direct negative effect on transport fares and thus the business environment of the Nation and thus his major policy for the nation(strengthening the private sector).
As a result, Nana has been doing all to help get the price of fuel down and below are some of his actions to attest to that;
A removal of taxes
With the airline fares, the price of air fuel in Ghana has been one of the highest in the world and as a result always caused the airlines(both local and international) to operate in Ghana but fuel their tanks in the near by African countries, this as a result gradually killed the airline industry in Ghana.
The president only reduced the huge taxes on the plane fuel and also took off some taxes imposed on the operations of the airline companies and that has brought about the huge decline in the price of local airfares we experiencing now.
That of the land transportation has not been different.
Note, there has been a budget presentation and approval for the cuts in taxes on import of car parts, and also proposal for the review of the tariffs being paid by drivers at the DVLA is also being pushed, which will all help reduce the transport fares soon.
Work on the cedi appreciation and stability has been one of the recent huge interest of nana addo and has through that helped taken up the cedi against the dollar, with the president's strong determination to also further take it up against the currency of the different nations especially that of the USA.
This as being done will also help bring down the transport fares as it has already taken effect with the air fares, with more further decline yet to come.
As a result of the above, it can easily be analysed that eventhough this government can not be left off the blame of the land transport fares increase as the airfare decrease has been attributed to him, Nana really has Ghanaians at heart and it can clearly be seen through the policies he is pushing.
Just a comment
Hhhmm, may God be praised always
Nana Kwadwo Akwaa
Member, Critical Thinker International
Sent from my iPhone
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