• Monday, May 27, 2024
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BusinessDay

Transport fare surges 77% in one year on increased fuel prices

Petrol crisis mutes workers’ day as scarcity sting lingers

The average cost of transportation in Nigeria has increased by some margin, putting pressure on commuters’ pockets as fuel prices surged by over 150 per cent.

According to a recent report by SB Morgen (SBM) Intelligence, a geopolitical research firm, the average amount Nigerians spend on transportation has risen by 77 per cent.

The report, which was last updated on Friday, 26 April 2024, detailed how prices of goods and services have soared in Nigeria from the first quarter of 2023 to the end of the first quarter of 2024.

“Prices of essential commodities like soap and fuel rise over 150% in one year,” SBM stated.

The market intelligence firm noted that the surge can be directly linked to the increased operational expenses incurred by transportation providers, “who must grapple with the amplified cost of fuel as a primary input”.

As soon as President Bola Tinubu was sworn in May last year, he removed the petrol subsidy which gulped about N400 billion monthly from the government coffers.

Since the removal of the costly subsidy, petrol prices have almost tripled with an average price of N679 per litre as against N238 last May.

With the latest lingering fuel scarcity, the premium motor spirit now sells for around N800 per litre in many filling stations while it is sold between N1,000 and N1,500 on the black market.

The fresh scarcity of fuel has seen motorists sleep at filling stations in an attempt to get PMS at N600 per litre or less, leaving Nigerians to bear the brunt of high transport fares.

“The escalation in petrol prices over the reporting period has triggered a ripple effect, exerting upward pressure on transport costs for commuters across Nigeria,” SBM said.

“The data illuminates a stark reality: transport costs surged by a staggering 77% during the same timeframe,” it added.