Some commercial drivers and traders are refusing lower-denomination coins, causing consumers to pay more than approved prices. This practice creates a quiet form of price inflation, demanding immediate government attention. The issue, though seemingly small, directly impacts what Ghanaians spend on goods and services daily.
The Ghana Private Road Transport Union (GPRTU) recently announced an 8 percent increase in transport fares. However, commuters report paying effectively more, with fares rounded upwards to 10 percent or even higher. For example, an 8 percent adjustment requiring 10 or 20 pesewas extra might instead result in an additional GHS 1 charge. This occurs because drivers often avoid dealing with smaller coin denominations, forcing commuters to pay above the approved fare.
This widespread upward rounding adds to existing price pressures in the Ghanaian economy. National inflation stems from broader factors like monetary conditions, exchange rates, and supply constraints. Yet, repeated small increases across thousands of daily transactions cumulatively raise household spending on basic necessities. This disproportionately affects low-income households, for whom these seemingly minor increases matter significantly.
The Chronicle newspaper, which published an editorial on this issue, does not suggest this practice is the sole cause of Ghana's inflation. However, it warns that if market women and other traders also begin refusing 10 and 20 pesewa coins, prices could rise further. An item costing 80 pesewas could become GHS 1, not due to increased underlying costs, but simply because sellers dislike small coins. This places an unnecessary burden on consumers.
Transportation is crucial because its costs affect the entire economy. Higher transport expenses increase the cost of moving food, merchandise, and workers. Businesses may then pass these additional costs onto consumers, exacerbating inflationary trends. The government must therefore investigate whether transport operators are charging above the approved 8 percent adjustment.
If operators exceed approved fares, relevant authorities must intervene to enforce compliance. An officially announced fare adjustment should be strictly adhered to by all. Commuters should not face additional increases through informal rounding practices. The Ministry of Transport and other agencies should engage the GPRTU to determine the extent of these practices.
The Bank of Ghana should also address the declining practical use of lower-denomination coins. If coins remain legal tender, businesses and transport operators must accept them. Consumers should not be disadvantaged because some find coins inconvenient. While very small denominations can pose practical difficulties, arbitrary upward rounding cannot become the norm.
Ghana's government is actively working to stabilise the economy, contain inflation, and restore citizens' purchasing power. Every avoidable source of price pressure, no matter how small, deserves attention. The government must establish the facts, enforce approved transport fares, and ensure the country's legal tender is respected. Ghanaians already struggle with the cost of living and should not pay more simply because some refuse legal coins.