The Abossey Okai Spare Parts Dealers Association has rejected claims that rising spare parts costs are contributing to a proposed 20 per cent increase in transport fares, arguing that prices within the sector have remained largely stable in recent months.
The Association’s response comes after sections of commercial transport operators announced plans to increase fares from June 2, citing escalating operational expenses, including vehicle maintenance and spare parts costs.
Speaking in an interview in Accra, the Association’s Head of Communications, Takyi Addo, said assertions that spare parts prices have risen significantly are inaccurate and do not reflect current market conditions.
According to him, the relative stability of the Ghana cedi against major foreign currencies, particularly the US dollar, has helped importers and traders maintain stable pricing across the spare parts market.
“Spare parts prices have not been increased at all. There is 100 percent stability in the spare parts business. In fact, the stability of the cedi against the dollar has rather helped to keep prices stable,” he stated.
Mr Addo stressed that while transport operators may have concerns about their overall operational costs, spare parts prices should not be presented as a key justification for the planned fare adjustment.
“We disagree with the transport operators. They should not say they are increasing fares by 20 per cent because spare parts prices have gone up. That is simply not true. Traders are happy with the current trend in the market,” he said.
The Association noted that the improved performance of the local currency and reduced volatility in the foreign exchange market have eased pressure on businesses that rely heavily on imports, including spare parts dealers.
While acknowledging that traders continue to advocate for lower taxes and reduced business costs, Mr Addo maintained that current market conditions do not support claims of widespread price increases within the spare parts sector.
“If you ask me as the Head of Communications for the Association, there is no increment in spare parts prices. We have stability in the market and everything is okay now compared to previous periods,” he added.
The Abossey Okai Spare Parts Dealers Association has also called on transport operators to engage government and relevant stakeholders directly on concerns relating to fuel prices, taxes and other operational challenges instead of attributing planned fare increases to spare parts costs.
The disagreement highlights growing debate over the justification for the proposed fare adjustment, which has generated concern among commuters already grappling with the rising cost of living.
Transport operators have argued that increasing operational expenses continue to affect their businesses, while spare parts dealers insist that at least one of the reasons being cited for the planned fare hike does not reflect current realities in the market.
By: Janice Opoku-Agyemang
