Ministry of Transport has no power to determine transportation fares – COPEC

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Ministry of Transport has no power to determine transportation fares – COPEC

The Chamber of Petroleum Consumers (COPEC) has raised objections to the Ministry of Transport's recent directive to the concerning the enforcement of new transportation fares.

On Monday, April 15, the Ministry instructed the to monitor commercial drivers to ensure compliance with approved fare rates. However, Duncan Amoah, the Executive Secretary of COPEC, has challenged the Ministry's authority to dictate fare adjustments, particularly in a deregulated market.

Amoah argued that the Ministry lacks legal grounds to mandate fare adjustments, especially in an environment where transportation costs are influenced by various uncontrollable factors such as fuel prices, insurance costs, and currency fluctuations. He emphasized that fare adjustments are often necessitated by rising operational expenses incurred by drivers.

While acknowledging the need for fair and reasonable fare pricing, Amoah criticized the Ministry's approach, suggesting that it fails to address the underlying challenges faced by drivers. He highlighted the absence of regulatory mechanisms to control fare pricing, pointing out that costs are typically passed on to consumers due to market dynamics.

Amoah cautioned against the Ministry's attempt to assert authority beyond its constitutional mandate, particularly in matters relating to fare determination. He called for a more holistic approach to address the complexities of transportation economics, urging authorities to engage stakeholders in constructive dialogue to find sustainable solutions.

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