High transportation cost is fuelling increases in prices of food, clothes and other items owing to the persistent scarcity of fuel, as Nigerians make preparations for Christmas.
To gauge the impact on the festive season, BusinessDay spoke with over a dozen individuals and an overwhelming number expressed frustration over the rising price and scarcity of fuel which has led to an increase in transportation fares across the Lagos metropolis.
“We can’t commute frequently now because of the high cost of transportation owing to fuel scarcity,” Mary Dosumu, a hairdresser who was at Oyinbgo Market to make a purchase, said.
“This is part of what is driving the surge in food prices and other items this festive period,” Dosumu added.
Chinyere Chibuzor, a trader at Oyingbo Market noted that traders will always transfer any additional cost incurred on products.
“Fuel scarcity is also responsible for the continuous rise in food prices. If the government is serious about addressing the surge in price, they need to address the issue of petrol scarcity first,” Chibuzor said.
He urged the government to come to the aid of Nigerians, saying the majority cannot afford to celebrate Christmas due to the high cost of living.
Investigation showed that most filling stations sell petrol at about N250 per litre, 35 percent higher than the N185 per litre it was previously sold. Fuel sold in the black market ranges between N350 and N500 per litre, while public transporters have increased fares on all routes.
Transportation from Pako to Oyigno which was N200 before has increased by 100 percent to N400; from Oyingbo to Apapa has gone up from N200 to between N300 and N400 depending on the time of the day.
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Rebecca, a baker, explained how the increase in fuel prices affects other sectors of the economy, saying that prices of materials for producing bread had increased due to the cost of transporting raw materials and finished items to the market.
This year, Nigerians experienced higher food prices with headline inflation at 21.47 percent in November, as the National Bureau of Statistics (NBS) reported a persistent increase in 9 months and food inflation at 24.13 percent.
Also, crippling fuel scarcity and higher diesel prices in the past months are affecting several businesses.
Tailors, who are usually highly busy sewing clothes throughout the holiday season, are suddenly singing a different tune. According to them, there is no trace of the holiday season in the sales, as buyers show no interest in purchasing new clothes.
Last year at this time, Seyi Olowu, a tailor, said she began receiving bookings in October and was fully booked by the end of November. So far this year, she noted that the only materials she has brought for sowing are those required for weekend gatherings.
“Nowadays, individuals are more concerned with feeding their families than buying expensive outfits,” Olowu said.
