• Friday, September 29, 2023
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NRC increases fare as inflation bites

NRC increases fare as inflation bites

The Nigerian Railway Corporation (NRC) has increased its fare on all routes across the country.

In a memo, NRC says the 24-seater coaches will now cost N9,000 instead of N6,500; the 56 and 68-seater coaches will now cost N6,500 instead of N5,000; and the 88-seater coaches will now cost N3,600 instead of N2,500, with minors paying N3,000.

Meanwhile, fares for Lagos to Abeokuta have been raised for the 24-seater coaches to N6,000; 56 and 68-seater coaches, N4,500 and 88-seater coaches, N3,000, while minors cost N2,000.

For Abeokuta to Ibadan, 24-seater coaches now cost N3,000; 56 and 68-seater coaches go for N2,000 and 88-seater coaches now N1,000, while minors cost N600.

In an interview with journalists, Fidet Okhiria, NRC’s managing director, justified the fare hike; attributing it to increased energy bills, especially diesel which is needed to operate the trains.

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“The major cost should be the cost of diesel, because we require diesel to operate the trains. The cost of diesel has gone up by more than three times and it is costing us to mount human and material security that it requires to keep the trains operating,” Okhiria said.

“It is better to have it operating than not operating. It is the service we are providing but in order to provide it, everybody has to make some sacrifices,” Okhiria added.

The rise in the cost of purchasing petrol and diesel in Nigeria has made operations tough for households and businesses, as the global energy crisis persists.

The price of petrol and diesel, which is imported, is affected by the international price of crude and the cost of foreign exchange.

The average retail price for Automotive Gas Oil (AGO) also called diesel in October 2022 rose by 215 percent to N801 per litre from N254 in the same period last year, according to the National Bureau of Statistics (NBS).

On a month-on-month basis, it increased by 1.42 percent from N789 per litre in September.