Fuel Price Reduction: A Drop in the Ocean as Transport Fares Remain High
Nigerians have expressed frustration and disappointment over the failure of transporters to reduce transport fares despite the recent decrease in fuel prices. The reduction in fuel prices, which was sparked by the Dangote refinery’s decision to lower its ex-depot price from N970 to N899.50 per liter, has not been reflected in the transport fares charged by drivers and transport operators.
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Many Nigerians have taken to social media to express their discontent, with some pointing out that the increase in transport fares was not proportionate to the increase in fuel prices. For example, one user, #AsiwajuOladimeji, noted that when the price of petrol was N1,200 per liter, transporters increased fares, but now that the price has come down, there is no reduction in fares. Another user, #Arakunrin, stated that the normal fare from Oshodi to Iyana-Ipaja was N500, but after the fuel price increase, it went up to N700, and now that the fuel price has decreased, it is N1,000.
Some users have argued that the slight reduction in fuel price is not enough to trigger a reduction in transportation costs. Others have pointed out that the rate drivers were collecting when the fuel price was N1,200 was not enough, and that a drastic reduction in fuel price is needed to effect a significant reduction in transport fares.
The President of the National Association of Chambers of Commerce, Industry, Mines, and Agriculture, Mr. Dele Oye, has attributed the high transport fares to the dollar exchange rate and the fact that Nigeria is a demand economy. He noted that the country’s production capacity is not enough to meet 30% of its needs, and that most of the goods used in the country are imported. Oye advised that the only way to grow the economy is to provide single-digit capital for the private sector, which would increase production and enable people to buy goods at affordable prices.
The issue of high transport fares despite the reduction in fuel prices has sparked a heated debate among Nigerians, with many calling for a review of the transport fare system and for transporters to be more transparent and accountable in their pricing. The government has also been urged to take steps to address the issue and ensure that the benefits of the fuel price reduction are passed on to consumers.
