Issued by: Food and Nutrition Information System (FANIS)
Date: May 26, 2025
The recent directive by the Ghana Private Road Transport Union (GPRTU) to reduce transport fares by 15% effective Saturday, May 25, 2025, following a significant drop in fuel prices, is a welcome development with critical implications for Ghana’s food and nutrition systems. FANIS recognizes this initiative as a step in the right direction toward easing cost burdens on consumers, market actors, and food supply chains.
Implications for Food and Nutrition Security
- Reduced Food Prices for Consumers
Transport costs constitute a significant portion of the final retail price of food. A 15% drop in transport fares is likely to lower the cost of moving food items—especially perishable goods such as vegetables, fruits, milk, eggs, and meat—across districts and regions. This can translate to lower market prices, increasing access to nutritious foods for households, particularly those in low-income urban and peri-urban areas. - Improved Profit Margins for Food Vendors and Farmers
For smallholder farmers, wholesalers, and retailers, high transport costs have often eroded profit margins. With reduced fares, these actors can retain more income or pass savings onto consumers, leading to more stable food markets. This may also encourage greater supply of perishable but nutrient-rich foods, improving food diversity. - Enhanced Food Flow and Distribution
A reduction in fare encourages more frequent and cost-effective movement of food across districts, especially from rural production zones to urban markets. This supports better food availability and distribution, reducing post-harvest losses and improving market efficiency.
Risks of Non-Compliance
FANIS cautions that non-compliance by some transport operators could significantly undermine the expected positive outcomes. If transport cost reductions are not uniformly applied:
- Food prices may remain artificially high in some areas, exacerbating inequalities in access to nutritious foods.
- Traders may bear the brunt of unchanged transport costs, reducing their motivation to transport fresh produce, especially to remote or less profitable markets.
- Regional disparities in food availability may persist, negatively affecting nutrition outcomes, particularly for vulnerable populations such as children, pregnant women, and the elderly.
FANIS Position
We commend GPRTU and the Ministry of Transport for this progressive decision. However, we urge the enforcement of compliance across all regions and transport operators. FANIS also encourages spare parts dealers and other cost components in the food transport chain to mirror this effort by reviewing their prices accordingly.
To ensure maximum benefit to food and nutrition security, FANIS recommends:
- Monitoring fare compliance across food transport routes, especially to major markets.
- Evaluating food price responses in the weeks following the fare reduction to identify gaps.
- Collaborating with stakeholders to maintain a balance between transport affordability and service quality.
Conclusion
The 15% fare reduction has the potential to positively impact food access, affordability, and nutrition in Ghana. FANIS stands ready to work with relevant authorities to monitor and analyze the effects of this policy and provide evidence-based recommendations for sustaining food systems resilience.
