An economist, Professor William Peprah, has warned that any increase in transport fares driven by rising fuel prices could have far-reaching consequences for inflation, food prices and the overall cost of living in Ghana.

Speaking in an interview on Joy FM's Midday News on the impact of the proposed 30% fare adjustment by road transport operators, Prof. Peprah said Ghana's heavy reliance on road transportation means higher transport costs would inevitably be passed on to consumers.

"This is going to be a major challenge because we all know that when fuel prices increase in Ghana, it has an impact on transport. It will clearly affect the distribution of food and also other consumer items.

"The challenge is that it is going to affect the general pricing index and inflation, leading to a major increase in the prices of goods in Ghana," he explained on Tuesday, July 28.

Prof. Peprah further cautioned that rising fuel prices would increase the cost of fuel imports, placing additional strain on Ghana's external accounts and the cedi.

"Another impact is that the cost of importing fuel is going to go high, and this will affect our balance of payments account. That could put pressure on the cedi, and when the cedi depreciates, it also fuels inflation," he noted.

He urged government to urgently adopt measures to cushion the economy against the expected shocks.

His comments come as transport unions suspend a proposed 30% increase in transport fares while monitoring developments in the next fuel pricing window, amid concerns that another rise in fuel prices could further increase the cost of living.