Nigerians may face harder times, as higher fuel prices may soon lead to increase in transport fares, even as transporters in some parts of the country have already implemented increases.
It is envisaged that the increase in transport fares, is most likely to affect prices of other goods and services, as is usually the case.
The new prices regime follows a fresh surge in global crude oil prices as Brent crude rose above $100 per barrel while U.S. benchmark West Texas Intermediate (WTI) rose to $92.71 per barrel amid renewed tensions in the Middle East, triggering higher ex-depot and pump prices across the country.
Fresh loading data obtained from petroleum marketers showed increases in ex-depot prices across Lagos, Warri and Calabar. In Lagos, A.A. Rano raised its ex-depot price from N1,275 to N1,279 per litre, while African Terminal, Ascon, Gulf Treasure, Integrated and T.Time increased theirs to N1,275 per litre. EMADEB, however, reduced its price from N1,278 to N1,274 per litre.
Dangote Refinery also resumed gantry loading of Premium Motor Spirit (PMS) in naira after a week-long suspension, increasing its ex-depot price from N1,075 to N1,215 per litre, representing a 13.02 per cent increase.
The refinery had suspended gantry and coastal loading on July 15 after introducing a dollar-denominated pricing template for refined petroleum products, citing challenges in accessing sufficient crude oil under the Federal Government’s naira-for-crude arrangement.
The latest adjustments have pushed pump prices to between N1,260 and N1,400 per litre in several parts of the country, prompting transport operators to review fares.
In the Federal Capital Territory, commuters lamented that rising transport costs were consuming a larger share of their incomes, while commercial drivers said they had little choice but to adjust fares to reflect higher fuel costs.
Transport operators have also begun increasing fares on some routes in Lagos, although competition among commercial bus operators has limited across-the-board increases.
In Ilorin, major marketers raised pump prices to between N1,255 and N1,305 per litre, while petrol sold for about N1,350 in Kaduna and between N1,360 and N1,370 in Adamawa.
In Maiduguri, independent filling stations dispensed petrol between N1,370 and N1,390 per litre, while transport fare from Maiduguri to Kano increased from N20,000 to N25,000.
However, transport fares remained relatively stable in Ibadan and Kano despite higher fuel prices, with operators saying they were monitoring developments before reviewing fares.
(Ripples)