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Transport Fares Remain High Despite Petrol Price Drop


Fares for inter and intra-state transportations have remained high across the country despite the recent reduction in the price of petrol, checks by Daily Trust have shown.

The Dangote Petrol Refinery and the Nigerian National Petroleum Company Limited (NNPCL) had reduced their prices.

In Lagos, a litre of petrol was reduced from N925 per litre to N860 at filling stations following the cut in the ex-depot price initially by Dangote. The NNPCL also cut its price to N860.  

With the reduction in petrol price and the much promoted Compressed Natural Gas (CNG) of the federal government, it was expected that there would be an impact on transport fares. However, checks by Daily Trust show otherwise.

Oil industry players say the reduction in the pump price is still not significant, and considering other variables, it will take a long time for Nigerians to feel the impact.

Muhammed Abdullahi, who works with one of the oil marketing companies in Abuja, said only NNPC stations and others affiliated with the Dangote refinery have significantly reduced their pump price.

“And these stations are only a fraction of the thousands of filling stations in the country who are selling at almost N1,000. I believe for Nigerians to feel the impact of the reduction, majority of the filling stations have to reduce their pump price,” he said.

Situation in states

In Kano State, after the removal of fuel subsidy, commercial transporters jerked-up transport fares to all destinations following the increase in the price of fuel.

Abubakar Adamu, who claimed to have been plying the Abuja – Kano route for over a decade, said Kano to Abuja transport fare was jerked up from N5,500 to N9,000.

He said the fare from Abuja to Kano skyrocketed between N13,000 to N15,000 depending on the number of passengers in the car.

But a visit to Na’ibawa Motor Park revealed that a few drivers had reduced the fare by N1,000 for Abuja-Kano trip.

However, at ‘Yan Kaba Motor Park, Kano to Damaturu in Yobe State was N6,000 and after the fuel subsidy removal, the fare was increased to N10,000. Usman Dauda, a commercial driver operating in the motor park, said: “Many commercial operators can only reduce the transport fares after buying their fuel, because filling stations sell based on their discretion as there is no static fuel pump price.  

“You may charge N9,000 from Kano to Damaturu and on your way back, you have to charge N10,000 to balance the gap, because you probably got the fuel at a higher cost than that of Kano.”

A commuter plying the Kano-Maiduguri route said transport operators might not reduce the transport fare “because the fuel price isn’t static.”

According to him, “It is unfortunate that commuters now have to travel with extra money because the fare can change at any moment,” he said.

In Borno, when our correspondent visited the Tashar Kano Motor Park in Maiduguri, the transport fare had not changed.

One of the drivers, Aisami Isa, said they did not notice much change in the price of petrol in most filling stations in Maiduguri.

“As it is now, the transport fare from Maiduguri to Kano is: Mercedes Benz, N20, 000; Sharon bus, N12,000 and Hummer bus N9, 000,” Isa said.

 The Administration Secretary of the National Union of Road Transport  Workers (NURTW) Borno State branch, Alhaji Gana Mohammad Shuwa, said with the reduction in the price of fuel, the union was anticipating good days ahead, but most filling stations in Maiduguri, particularly independent marketers, were still selling at N1,030 to N1,040 per litre.

“We only buy at a discounted price from NNPC stations and major marketers like MRS, and Matrix selling at N980 per litre”, he said.

Also in Abuja, transporters have refused to reduce fares despite the fuel price reduction.

Residents told Daily Trust that the high transport cost had also contributed to high cost of living.

The fare for Kubwa-Berger Roundabout was N1,000 as against the N500 less two years ago; while Tipper Garage at Dutse to Apo Bridge was N1, 200 as against the N600, a year ago.

Commuters who interacted with Daily Trust at Nyanya Bus Stop said fares to the city centre and Kubwa/Zuba had remained the same despite the slight reduction in fuel prices.

Bello Yakubu, an engineer, expressed concerns that while the price of fuel had reduced, fares had remained constant.

Commercial drivers also said the high cost of vehicle parts, especially tyres, as well as servicing, were responsible for the high cost of transportation in the FCT.

They said that it cost them between N15,000 to N18,000 to service a Volkswagen Golf car, adding that a fairly used tyre which was previously sold between N6,000 to N8, 000 is now N18,000 and N23,000.

Findings by Daily Trust also revealed that prior to the removal of fuel subsidy by the federal government, transport fares from Zuba to Area 1 and Berger Roundabout in Abuja was N700 but since the removal of the subsidy, motorists had been charging between N1,300 and N1,500 per passenger.

In Lagos, findings also showed that despite the drastic reduction in the cost of petrol, the price of transport fare in Lagos remains unchanged.

Checks at some motor parks yesterday indicated that interstate fares remained on the high side. The fare for Lagos-Ilorin trip, which used to be N7,000, is still N13,000; while Lagos-Ibadan trip’s fare, which used to be N2,000, is N4,000 for buses and N6, 000 for cars.

Oladele Ismaila, a driver at Ojota motor parks said the reduction was insignificant. “How much was the reduction?” he asked, saying the fuel price at N860 is still on the high side.

A traveller in Kaduna, Hassan Adamu Hassan, said: “Just a few days ago, I travelled to Zaria and paid N1,700 instead of N1,300.”

Another passenger, who recently returned to Kaduna from Katsina, noted that the fare had slightly decreased from N7,500 to N6,000. However, he urged drivers to further reduce it to N4,000 in response to the lower fuel prices.

Benue/Kwara

At major motor parks in Makurdi, Gboko and Otukpo in Benue State, commercial drivers complained that the petrol price reduction had not significantly impacted their operational costs.

Transporters at the Wurukum Motor Park in Makurdi said petrol still cost about N1,000 per litre.

Usha Iorbee, a commercial driver, plying the Makurdi–Abuja route, said, “The price at the pump is still high. Until we see a significant drop in the cost of fuel and spare parts, we cannot reduce fares. Most of us buy fuel at N995 per litre, and we are still struggling to break even.”

In Ilorin, checks by our reporter showed that many of the petrol stations were still selling between the range of N900 and N950 per liter except NNPCL Adewole which sold for N880.

A motorist, Mr. Sulyman Malik, said: “Which price was reduced? Today, NNPCL is selling at N970, MRS N945 and Bovas N955. I have not seen any station selling lower. And even if we agree that there is some downward adjustment, how does it reflect? If we buy 50 litres at N50,000, for instance, and because of the so-called drop, I got it at N49,500, what difference does that make?

A student, Zainab Abeke, said she spends N800 daily to and from Tanke to the University of Ilorin as against the N200 it was previously.

Plateau

In Jos, at the Farin Gada Motor Park, the management of the union expressed mixed reactions over the recent fuel price reduction. While acknowledging the decrease, they described it as minimal.

Isa Ibrahim Bela, State Organising Secretary and Vice Chairman of Farin Gada Motor Park, under the Road Transport Employer Association of Nigeria (RTEAN), stated, “We appreciate the reduction in fuel prices, although it’s not substantial.

“We had hoped for a more significant decrease. Nevertheless, we’ve reduced fares by N1, 000 for long-distance trips to Kano, Sokoto, Katsina, and other far-flung destinations. For shorter trips to Saminaka, Zaria, or Kaduna State, we’ve lowered fares by N500.” 

However, Muhammad Muhammad, a driver at the park, said the fuel price reduction was insignificant. He alleged that the government was attempting to instigate passengers against them.

Samson John, a passenger, traveling to Kano, welcomed the reduction. “I’m experiencing the change in transport fare first hand. I’m traveling to Kano now, and they’ve reduced the fare by N1, 000. We still urge the government to do more to reduce fuel prices.” 

However, Abduldayyanu Sabiu, who was traveling to Tudun Wada LGA in Kano State, reported no change in the fare.

“As far as I’m concerned, there’s no difference in the price. I’m paying the same amount I paid last week,” he said. (Daily trust)

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