Transport fares still high as petrol price decreases, diesel increases in July

The costs of different forms of transportation in Nigeria have remained high in July, tracking fuel prices (Petrol and Diesel), which are still more than 10 percent higher than they sold in the same period of last year.

The average price paid for Premium Motor Spirit, also known as petrol decreased month-on-month by 0.18percent to N165.91 in July 2021 from N165.61 in June 2021. This was, however, an increase of 15.51 percent year-on-year, according to data from the National Bureau of Statistics (NBS).

States with the highest average petrol price were Adamawa (N173.67), Kwara (N170.40) and Plateau (N170.40). States with the lowest average price of petrol were Taraba (N162.25), Gombe (N163.17) and Niger (N163.71).

Also, the average price paid for Automotive Gas Oil also known as diesel, increased by 3.46percent month-on-month and by 11.76percent year-on-year to N250.82 in July 2021 from N242.43 in June 2021. States with the highest average price of diesel were Borno (N264.18), Adamawa (N261.00) and Abia (N260.00). States with the lowest average price of diesel were Plateau (N230.00), Anambra (N233.67) and Kogi (N234.17).

In terms of transport costs incurred by commuters across Nigeria, intra-city transport and water transport saw an average decrease in fares during the month of July. Others such as inter-city, air, and motorcycle (okada) transport increased.

The Transport fare Watch report for July 2021 showed average fare paid by commuters for bus journey within the city decreased -0.01percent month-on-month and increased by 65.76percent year-on-year to N410.17 in July 2021 from N410.23 in June 2021.

Read also: Transport infrastructure upgrade crucial to enjoy AfCFTA benefits

States with highest bus journey fare within city were Bauchi (N614.07), Taraba (N530.45) and Cross River (N520.08) while States with lowest bus journey fare within city were Oyo (N210.30), Abia (N235.30) and Borno (N280.40).

Average fare paid by commuters for bus journey intercity increased by 0.81percent month-on-month and by 41.41percent year-on-year to N2,542.95 in July 2021 from N2,522.44 in June 2021. States with highest bus journey fare intercity were Abuja FCT (N4,676.07), Lagos (N3,589.55) and Sokoto (N3,390.00) while States with lowest bus journey fare intercity were Bayelsa (N1,835.10), Bauchi (N1,876.24) and Enugu (N1,897.14).

Average fare paid by air passengers for specified routes single journey increased by 0.36percent month-on-month and by 0.50percent year-on-year to N36,793.24 in July 2021 from N36,662.57 in June 2021. States with highest airfare were Bauchi (N38,700.00), Rivers (N38,550.00), Lagos (N38,300.00) while States with lowest airfare were Akwa-Ibom (N33,200.00), Sokoto (N33,800.00), and Gombe (N35,000.00).

Average fare paid by commuters for journey by motorcycle per drop increased by 0.98percent month-on-month and by 70.49percent year-on-year to N294.02 in July 2021 from N291.18 in June 2021. States with highest journey fare by motorcycle per drop were Yobe/Zamfara (N460.05), Lagos (N450.20) and Taraba (N450.05) while states with the lowest journey fare by motorcycle per drop were Adamawa (N100), Kaduna (N170.08) and Kebbi (N175.45).

Average fare paid by passengers for waterway passenger transport decreased by -0.51percent month-on-month and increased by 28.34percent year-on-year to N831.97 in July 2021 from N836.23 in June 2021. States with the highest fares by waterway passenger transport were Delta (N2,500.12), Bayelsa (N2,450.12) and Rivers (N2,290.23) while states with the lowest fare by waterway passenger transport were Borno (N260.32), Gombe (N362.40) and Kebbi (N365.70).

It is unlikely to see lower transport costs in Nigeria, especially by road, unless through interventions beyond fuel costs, encompassing vehicle types that offer more efficiency at lower costs.