Determinants of urban public transport service pricing in Kumasi, Ghana

Abstract

The urban transport sector in most developing nations accounts for 50 to 70 percent of Gross National Product hence plays an important role in the development of the urban economy of most cities including Kumasi in Ghana. However, the pricing of urban transport services, especially in developing countries has been riddled with numerous challenges that have led to several associated problems. The main objective of the paper is to identify factors affecting the pricing of urban transport services in the city of Kumasi. Data for this paper were sourced from two key surveys spanning a period of five weeks which involved the interviewing of 150 urban transport services operators and 400 passengers in the Kumasi Metropolis. The paper identified fare level, fuel cost, overhead cost and population density among others as key factors which affected the pricing of urban transport services in Kumasi. Furthermore, it provides insights into how pricing could be used as a strategy to harmonise the interests of all stakeholders in the urban transport services industry in Kumasi. The paper further provides insights into the policy implications of the factors which affected pricing and suggests ways for the management of the pricing system in Ghana. KEYWORDS: Urban transport, developing, Ghana, pricing, Kumasi, fare