Transporters to raise fares on rising operational and living costs
By Jeph Ajobaju, Chief Copy Editor
Interstate transporters have served notice of a 25 per cent hike in fares from 25 August on the back of rising operational costs involving fuel, tyre, tube, and engine oil, as well as the cost of living involving food, cooking gas, school fees, and others.
All Private Transport Company Owners (APTCON) said the decision was taken at its boarding meeting to prevent operators from running aground.
“This is to formally advise all private interstate passenger transport company owners of Nigeria to increase bus fares across all interstate routes by 25 per cent effective 25th August, 2022,” a memo from APTCON to its members read.
“Sequel to the prevalent harsh economic situation as well as the recently announced increase in petrol pump price across the country, the board of APTCON, in collaboration with its member companies, have deliberated and have unanimously agreed that a marginal increase in interstate transportation fares is inevitable.
“Nigeria is facing a downturn that has greatly affected all sectors of the economy especially transportation.
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Reaction to changes
“In response to the high cost of operations, while many trade associations have increased charges as a means of survival, some others, like the elitist airlines, have received post pandemic intervention funds from the government,” APTCON added, according to reporting by The Nation.
“Unfortunately, our industry, who moves 96 per cent of Nigerians, is not exempt from the crisis as our operating costs have risen significantly without any form of governmental support or incentive.’’
Plethora of operational challenges
APTCON listed the challenges of the sector to include
- Petrol price has risen from N165 to N179 per litre, up 7 per cent
- Diesel price has surged from N250 per litre in 2021 to over N800 today, up 220 per cent.
- Inflation rate crested a 65-month high at 18.6 per cent in June, raising operational costs at least 50 per cent.
- Scarcity of foreign exchange (forex) and high exchange rates make it impossible for transporters to purchase new vehicles.
- The cost of spare parts for vehicle maintenance has risen nearly 80 per cent.
“These challenges have taken a significant toll on the revenue of private transport company owners across Nigeria as most transporters are either operating at a loss or at cost.
“While some have had to shut down operations completely, many others have expressed their inability to pay salaries much less run profitably.
“To address the situation, APTCON hereby implores all private interstate passenger transport company owners of Nigeria to increase bus fares by at least 25per cent effective 25th August, 2022.’’