Despite the recent reduction in the price of petrol, Nigerians have expressed frustration over the failure of transporters to reduce transport fares accordingly. Even with the reduction in the ex-depot price of petrol by Dangote Refinery from N970 to N899.50 per litre on December 19, 2024, followed by a similar move by the NNPCL, transporters have not reflected the price change in their fares. Instead, fares continue to rise.
The fuel price cut, which also led to a partnership between Dangote Refinery and MRS Petrol stations to sell at N935 per litre, was welcomed by many. However, transport fares, especially in major cities, have remained high. Nigerians have voiced their concerns on platforms like X (formerly Twitter), with some pointing out that transporters quickly raised fares when fuel prices spiked but have failed to adjust fares downwards after the reduction.
For instance, one X user noted that the fare from Oshodi to Iyana-Ipaja, which was N500 before the fuel price increase, surged to N700 during the fuel price hike and has now further increased to N1,000 despite the reduction in fuel prices.
Some users have also questioned the fairness of the fare hikes, especially considering that the reduction in fuel prices has not been substantial enough to trigger a decrease in transport costs. Others pointed out that the increase in transport fares was never proportional to the rise in fuel prices, which saw a drastic surge of over 500%.
The National Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has weighed in on the issue, stating that the dollar’s influence on prices in Nigeria is a key contributing factor. According to NACCIMA President Dele Oye, the country’s reliance on imports and its low production capacity significantly impact the pricing of goods and services, including transport fares.
Oye emphasized the need for Nigeria to focus on increasing local production to reduce reliance on imports. He also stressed that providing single-digit capital for the private sector could stimulate production, help control inflation, and ultimately reduce the prices of goods and services, including transport fares.