How N937 Petrol Is Choking Nigerian Transport Workers

Photo: The Punch

Wahala Don Full Market: Petrol Price Hits N937 Per Litre

My people, if you think the cost of living was biting before, prepare for a bigger shock. Fuel prices have jumped past N937 per litre across Nigeria, leaving transport workers, business owners, and ordinary citizens counting their losses. This latest spike, triggered by the ongoing Middle East crisis, has marketers calling for immediate naira-for-crude arrangements to ease the pressure on domestic consumers.

For context, just last month, many filling stations were selling petrol between N617-N700 per litre. Now, with the new price surge, we're looking at increases of over 30% in some locations. The ripple effect is already hitting where it hurts most - transportation costs.

Transport Workers Feel the Heat First

Commercial drivers across Lagos, Abuja, and other major cities are adjusting their fares almost daily. Oga Samuel, a danfo driver plying the Lagos-Ikeja route, told our correspondent: "Before now, I was charging N300 from Ikeja to Lagos Island. Today, I had to increase it to N400 because fuel don cost. If passengers no agree, na me go run at loss."

The situation is even more challenging for intercity transport operators. Bus parks in major cities report that luxury bus operators have increased fares by 25-40% on popular routes. A trip from Lagos to Abuja that previously cost N8,000 now goes for between N10,000-N12,000 depending on the transport company.

Motorcycle operators (okada riders) are not left out. In areas where they still operate legally, riders have doubled their minimum fare. "Person wey dey pay N100 for short distance before, now na N200 minimum," explains Musa, an okada rider in Abuja.

How Ordinary Nigerians Are Coping

The fuel price increase is forcing many Nigerians to rethink their daily routines and spending habits. Here's how different groups are adapting:

• Office Workers: Many are forming car-pooling groups to share transportation costs. WhatsApp groups dedicated to ride-sharing have become common in residential areas.
• Small Business Owners: Traders are factoring higher transportation costs into their product prices, leading to increased costs of goods and services across the board.
• Students: Many are opting to trek longer distances or use cheaper, more crowded public transport options to save money.
• Remote Workers: Those with flexible work arrangements are choosing to work from home more often to avoid daily commuting costs.

Mrs. Adunni Okafor, a civil servant in Lagos, shares her experience: "I used to take Uber to work three times a week, but with these fuel prices, I've switched to BRT and danfo completely. The comfort is not the same, but my salary cannot keep up with these increases."

Marketers Push for Naira-for-Crude Solution

Oil marketers across the country are intensifying calls for the Federal Government to implement a naira-for-crude supply arrangement. This system would allow them to purchase crude oil in naira rather than dollars, potentially reducing the impact of foreign exchange fluctuations on pump prices.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) argues that this arrangement could provide more stable pricing for consumers. However, industry experts point out that such a system requires significant policy adjustments and might take months to implement effectively.

Meanwhile, the Dangote Refinery's full operations could provide some relief, but the facility is still ramping up to full capacity. Industry watchers believe that once local refining reaches optimal levels, Nigeria could reduce its dependence on imported refined products, potentially stabilizing domestic prices.

The Broader Economic Impact

Beyond transportation, the fuel price surge is affecting multiple sectors of the economy. Food prices are climbing as farmers and distributors pass on higher transportation costs to consumers. Small-scale manufacturers who rely on generators for power are facing increased operational costs, which ultimately affects the prices of locally made goods.

The hospitality industry is also feeling the pinch. Hotels and restaurants that depend on generators for backup power are seeing their operational costs rise significantly. Some establishments are already adjusting their prices or reducing services to manage costs.

Government Response and Way Forward

So far, government officials have acknowledged the challenges but maintain that subsidy removal remains necessary for long-term economic stability. However, the timing of this latest increase, coming amid already high inflation and cost of living pressures, has intensified calls for immediate intervention.

Economic analysts suggest that without swift action to address the root causes - including foreign exchange challenges and over-reliance on imported fuel - Nigerians should prepare for more price volatility in the coming months.

For now, ordinary Nigerians are doing what they do best - finding creative ways to survive and adapt. But the question remains: how long can this resilience last without significant policy intervention to ease the burden?