Transport Companies Mull Fare Hike as NBS Says Intercity Travel Price Increased by 46.91 Per Cent
- Inter-state transport operators in Nigeria are considering another 2% fare hike in the coming weeks
- The operators said the high cost of petrol and inflation on motor parts are pushing the increase
- The development follows a recent report by the National Bureau of Statistics (NBS) that intercity bus fares rose by 46.49% in August 2023
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Ahead of the Christmas holidays, transport operators in Nigeria have indicated that inter-state fares will increase by 20%.
A manager at Okeyson Transport Services told Legit.ng in an exclusive interview that the hike in fares is due to general inflation and the high cost of petrol in Nigeria.
Source: Facebook
Bus transport operators move to increase fares on inter-state travels
The manager, who preferred anonymity, attributed the development to rise in petrol and impact of inflation on motor parts.
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He said the proposed hike will be similar to the one done in June this year.
“If you consider that petrol is sold as high as N750 per litre in the Southeast and parts of the North, you will appreciate our struggle. Before the subsidy was removed, the average trip to the Southeast cost between N8,000 and N10,000. Look at the margin of increase now.
He said getting genuine motor parts costs a lot as dealers complain of high or scarcity of Forex to bring in products.
NBS shows surging cost of intercity transport
The revelation comes as the National Bureau of Statistics (NBS) said the bus travel costs soared in August 2023.
A previous report showed that the average cost of transportation in Nigerian cities increased from N649.59 in May to N1,285 in June following the removal of petrol subsidies.
The development means intra-city transportation surged by 98% or N636 in one month.
In its Transport Fare Watch report, the NBS revealed that the cost of intercity rose to N5,918.18 per drop in August, compared to the previous year’s cost of N3,779.96.
The report said that the average fare paid by commenters for intercity bus journeys per drop declined to N5,918.18 in August 2023, showing a decrease of 0.02% every month compared to the N5,919.49 recorded in July 2023.
Yearly, the transport costs rose by 121.81% from N602.48 in August this year.
Punch reports that the NBS report said it increased by 121.81% from N602.48 in August this year.
Airfares surged to N79,0000 in August
Additionally, air travel costs for specific routes and single journeys rose by 0.30% from N78.77.74 in July 2023 to N79.011.38 in August 2023.
The NBS said the cost of air travel increased by 21.48% from N65.041.89 in August.
Water transportation showed a marginal increase at N1,406.74 in August 2023 from N1,406.70 in July, showing a minimal increase.
The figure shows a substantial 44.39% increase from N974.26 in August, indicating the consistent inflation in water transportation.
“No More N9k”: Transportation companies release new price list for inter-State travels
Legit.ng had reported that transportation companies hiked their fares on various routes across Nigerian cities in response to the increase in petrol prices in the country.
Checks by Legit.ng showed that some interstate fares have significantly increased to various parts of the country from Lagos.
Transport fares have jumped by over 100 per cent on some routes, which is expected to worsen, especially during the festive period.
Source: Legit.ng
