Many commuters in Lagos state have turned to the state Bus Rapid Transit popularly known as ‘BRT’ as privately-owned commercial buses significantly increase fare prices due to fuel subsidy removal.
The switch according to reports is a result of several commercial buses exploiting the situation by arbitrarily increasing bus fares by 100 percent.
Some Lagosians have also claimed that Sienna vehicles used for commercial purposes are also charging outrageous amounts.
Also, App-Based Transport firms, such as Uber, Bolt, Lagride, and Indriver among others, have reviewed their transport fare by 200 percent. They have also set N2000 as the minimum cost for a trip following the removal of fuel subsidy.
As a result of this several commuters have reportedly resorted to trekking long distances to conserve transport costs, while motorists complain of low patronage.
Recall that the fuel subsidy removal announced by President Bola Tinubu on Monday, May 29, has seen petroleum marketers adjust the pump price of premium motor spirit (PMS) known as petrol from N185/liter to between N488/liter and N511/liter.
In reaction to the new development, the Nigerian National Petroleum Company Limited (NNPCL) also approved an upward review in the pump price of petroleum nationwide, shooting the price up to an average of N500 from the erstwhile average of N189. The approval took effect from Wednesday, 31 May, the NNPCL said in a circular.
In Lagos, Nigeria’s commercial nerve center, the pump price of petrol shot up significantly, with some filling stations selling as high as N700 per liter.
The pronouncement was trailed by panic buying and gridlock across filling stations in many parts of the country, even as regulatory bodies called for calm amid the chaos. The consequences of the fuel subsidy removal have also reflected in the skyrocketed prices of goods, essential services, and food items.
Investors King understands that the removal of fuel subsidy by President Tinubu’s administration is coming after Nigeria has spent trillions of naira on petrol subsidies in the past years, more than it spent on healthcare, education, and key areas of human capital development.
Experts and global development organizations have however warned against the policy and its effect on Nigeria’s fiscal sustainability.
