Fuel Prices and Road Transportation Fares in Ghana
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Date
2015-07
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Journal ISSN
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Publisher
Pertanika Journal of Social Sciences and Humanities
Abstract
We develop a mathematical model for automatic adjustment of new transportation fares
in terms of old transportation fares, the number of litres of petrol/diesel a vehicle requires,
the quantum of adjustment, the number of trips a vehicle makes on a specified route and
the number of passengers a vehicle carries. We recommend that any adjustment to existing
fares should be exactly the loading and that any additional amount to the existing fares
differing from the loading leads to either overcharging or undercharging of passengers.
We also show that any negotiation about the quantum of adjustment to existing fares
reduces to the proper assignment of the number of trips a vehicle plies on a specified
route. We tested our models on privately operated commercial vehicles using data from
major lorry stations in Accra, the National Petroleum Authority and Drivers and Vehicular
License Authority in Ghana. The results indicated that passengers are undercharged on
some routes whereas they are overcharged on others. The model should be useful to
transportation planners, coordinators and administrators in setting and adjusting road
transportation fares. It should assist in settling disputes about new transportation fares
between passengers and drivers that arise when there is adjustment in fuel prices.
Description
Keywords
Asset replacement cost, destination distance, expected charge, loading, viability condition, stability model