The recently released data by the National Bureau of Statistics (NBS) showed that the rising prices for gas, liquid and solid fuels, and passenger transportation (by road and air) were some of the major factors contributing to the increase in core inflation.
These factors have been identified as factors pressuring Nigeria’s inflation rate, which reached a new high of 19.64 percent in July.
This is the seventh consecutive month of inflation rise and the highest point in 12 months, increasing to 1.75 percent month-on-month.
Transportation costs increased to 17.56 percent on a year-to-year basis from N342.3 in 2021 and showed a 1.61 percent increase on a month-to-month basis.
“The highest increases were recorded in prices of Gas, Liquid fuel, Solid fuel, passenger transport by road, passenger transport by air, garments, cleaning, repair and hire of clothing,” NBS stated.
Data obtained from NBS showed that the average retail price for refilling a 12.5kg cylinder of cooking gas increased by 121.2 percent to N9,486 in June 2022 from the same period in 2021. On a month-on-month basis, it also rose by 8.7 percent from N8, 726 in May.
Also, the price for refilling a 5kg cylinder of cooking gas increased year-on-year by 103.9 percent to N4, 218 in June 2022. On a month-on-month basis, it also rose by 7.6 percent.
In July, a survey done by BusinessDay revealed that economy class tickets from Lagos to Abuja, Port Harcourt, Kano, Owerri and Asaba were selling for between N70,000 and N120,000 as against the N50,000 base fares charged by airlines. Fares on other routes are not any different with fares increasing and some sold for above N100,000.
NBS Transport Watch for June noted that the average fare paid by commuters for bus journeys within the city per drop rose by 42.02 percent from N410.23 in June 2021 to N582.61 in June 2022, it increased by 0.10 percent month-on-month from N582.06 in May 2022 to N582.61 in June 2022. On a year-on-year basis, the fares rose by 45.21 percent from N2522.44 in June 2021.
Diesel’s average retail price paid by consumers increased by 202.67 percent on a year-on-year basis, while petrol’s average retail price increased to N175.89 in June 2022 from N165.61 recorded in June 2021, indicating a 6.21 percent increase, according to NBS data.
“From a lower cost of N242.43 per litre recorded in the corresponding month (June) of last year to a higher cost of N733.78 per litre in June 2022.”