The National Bureau of Statistics says that transport fares have risen by as much as 75% since May 2023, when President Bola Tinubu announced the removal of petrol subsidies.
The NBS’ Transport Fare Watch for October 2023 disclosed that intracity journeys, bus journeys, and airfare charges for specific routes have more than doubled.
The high cost of petrol leads to the high cost of transport
ThisDay reports that the average retail price paid by consumers for petrol for October 2023 was N630.63 per litre, showing a 222.93% rise compared to the value recorded in October last year.
Also, comparing the average price value with September 2023, the average retail price of the product rose by 0.71% from N626.21 per litre of petrol.
According to the report, Zamfara state recorded the highest average retail price for petrol at N659.39, Gombe, and Borno at N658.33 and N657.27 per litre, respectively.
Top states and zones with the highest petrol prices
Lagos, Oyo, and Delta states recorded the lowest average retail price for petrol at N590.95, N592.95, N592.19 and N599.38, respectively.
On a geopolitical level, the Northeast recorded an average retail price of N644.16, and the Southwest recorded the lowest price of N616.81.
Following the increase in petrol and diesel prices, transport companies adjusted their expenses to reflect the high cost of gasoline and increased patronage from travelers ahead of the Christmas celebrations.
Feelers show that many Nigerians may not been keen to travel for the Christmas celebrations due to the high cost of transport fares caused by the rise in petrol and diesel prices.
Transporters hike prices ahead of Christmas
Before subsidy removal, the average transport fare to Onitsha in the Southeast was about N10,000. The price doubled after subsidy removal.
The transporters report low patronage as Nigerians have reduced travel costs due to increased fares.
Transporters told Legit.ng that they charged about N13,000 to Onitsha between June and August due to low patronage and demand.
“The low demand at that period was largely due to the weather. Nigeria is usually at the peak of rainfall between June and August. So, transporters are always forced to cut down on their fare,” Ugochukwu Eze, a Manager with Okeyson Motors in Ogba, Lagos, said.
He said the prices will rise by over 50% as Christmas approaches due to increased demand.
Various transport companies have adjusted their prices ahead of the yuletide as of November 28, 2023.