Deregulation Pushes Road Transport, Air Fare Up In August

Amount spent on transportation has jumped to an all time high in August amidst government's decision to deregulate the prices of Premium Motor Spirit popularly called petrol. Nigeria had in March this year announced its intention to introduce a price regime based on market realities. Approved by President, Muhammadu Buhari, the Petroleum Product Pricing Regulatory Agency on September 5 officially deregulated  petrol prices.

Consequently the PPRA released a guideling titled, 'Premium Motor Spirit Market Based Pricing Regime Regulation, 2020.' Figures from the new Transport Fare Watch report for August 2020 published by the National Bureau of Statistics, revealed that prices of fares across the transportation sector had reacted to the market-based pricing regime for PMS prior to the official implementation. The official report revealed that average fare paid by commuters for inter-city bus journey increased by 8.69 per cent in August to N2,063, against the N1,898.1 recorded in July.

This represents an increase of 26.98 percent in one year. The highest bus journey fares for intercity were Abuja N4,234, Sokoto N2,953.27 and Lagos N2,943.27, while the  lowest bus journey fare within the city were recorded in Bayelsa N1,300, Bauchi N1,321 and Edo N1,435. The Bureau stated that the average fare paid for bus journey within the city surged by 12.70 per cent to N278.88 in August 2020 from N247.46 in July 2020, while it jumped by 48 per cent within a one year period.

The NBS listed  Zamfara , Cross River and Ekiti states among states with the highest bus fares within the city at N550.1, N400, and N386.7 respectively. The lowest bus  fares within the city were recorded in Bauchi, Kebbi  and Rivers at N162.4, N180.18, and N182.4 respectively. During the period, average fare paid by air passengers for specified single route journey rose by 5.6 per cent in August to to N38,659.9, from N36,611.2 in July 2020, while it accelerated by 26.56 percent in one year.

States  with highest air fares were Abuja (N43,000), Lagos (N40,600), Borno (N40,000), while States  with lowest air fare were Ekiti (N37,450), Akwa Ibom/Edo (N37,500), and Nasarawa (N37,600).

Average fare paid for a journey by motorcycle per drop also rose by 14.37 per cent in one month to N197.2 in August, from N172.5 in July, while it increased by 63.48 percent year-on-year.

NBS said that average fare paid by passengers for waterway passenger transport increased by 5.79 per cent to N685.82 in August this year from N648.3 in July this year, while it witnessed 24.33 percent increase in one year.

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