Commercial transport operators have increased their fares despite lower fuel prices and the introduction of compressed natural gas (CNG) as an alternative to petrol.

Passengers disclosed that the high fares charged by commercial transport operators affect their earnings.

Passengers lament high fares despite low fuel prices The passengers revealed that most of the fares are set by transport unions for the operators, who then pass them on to the commuters.

According to them, fares have remained the same since petrol prices crashed from N1,200 per litre to N860 and currently N930, saying that fares have risen by 400% since President Bola Tinubu removed the fuel subsidy in 2023.

Checks reveal that commercial transport operators pay about three levies in every park, depending on the leadership and transport union responsible.

The levies include booking fees, loading fees, and ticket fees paid daily to the unions at the motor parks.

Intercity transport fares rise

However, data from the National Bureau of Statistics (NBS) disclosed that the average fare paid for intercity transport in Nigeria in April rose to N7,122.75 from N3,994.51 in 2023.

The NBS report also disclosed that a minor decrease of 0.43% per month was recorded during the period, with average fares falling from N7,152.97 in March last year.

Legit.ng previously reported that in the last 22 months, petrol prices have jumped significantly, hovering between N800 and N900 per litre, with projections suggesting they may rise above N930 per litre.

High transport costs affect household income

Transporters on their part increased the cost by 20 to 100% over the period.

The spike has increased logistics expenses for food traders, who pass the cost onto Nigerians buying at the market.

Many families now struggle to afford three square meals daily.

According to SBM Intelligence, Nigeria’s transport costs have increased over the last seven years.

Interstate fares rise by 400%

Bus fares for interstate travel rose by 403.5%, airfares by 280.7%, and water transport fares by 148.8% over the period.

The report further revealed that three out of 10 Nigerian workers spend over 20% of their salary on transportation, underscoring the heavy financial burden caused by rising transport costs.

Samson G. Simon, chief economist at ARKK Economics and Data Limited, noted that even employed Nigerians struggle to afford nutritious diets due to shrinking disposable incomes, BusinessDay reports.