Even though petrol prices have recently decreased, merchants and transportation providers throughout Lagos continue to maintain their current rates, causing frustration among residents who are finding it increasingly difficult to manage their expenses due to these high costs.
A survey carried out by PUNCH Metro in various markets within the Mile 12, Mushin, and Balogun areas of Lagos on Saturday revealed that the cost of basic necessities like groceries, household products, and transportation fees remains high. This persistence persists despite hopes that lower fuel expenses would provide some respite.
In an interview with PUNCH Metro, Mr. Bayo Adebayo, who commutes from the Ojota bus station, voiced his dissatisfaction over the situation where although the cost of fuel has decreased, prices for both food and transportation have not followed suit.
Previously, I paid an N800 fare from Ojota to Oshodi when fuel cost N1,200 per liter. Nowadays, with fuel priced at approximately N890, my fare remains unchanged at N800. This seems illogical. Shouldn't transport operators be lowering their prices?
In Ketu Market, vendors cited elevated transportation expenses and fluctuating fuel rates as reasons for maintaining price levels. Mrs. Oluchi Nwosu, who sells tomatoes, explained, "Although fuel costs have decreased slightly, transporting items from the Northern region remains expensive. According to transport operators, they anticipate potential future hikes, which is why they continue to charge us at current rates."
However, commercial drivers argue that elements other than petrol prices influence their fare rates. According to Mr. Yusuf Lawal, who drives a danfo, he informed PUNCH Metro that the expenses for vehicle upkeep and replacement parts remain steep.
"The cost of engine oil, tires, and various components has remained unchanged. If we lower transportation fees now and fuel prices increase again soon, we would be the ones facing difficulties. It’s important for Nigerians to realize that factors beyond just fuel influence transport costs," he stated.
Experts suggest that sluggish price adjustments stem from the specific makeup of Nigeria’s economy. According to Dr. Tope Aluko, a financial analyst, product and service prices surge rapidly with increases in fuel costs yet hesitate to decrease when fuel expenses decline.
"This phenomenon is known as price stickiness. During a crisis, numerous companies increase their prices, yet once the crisis subsides, these businesses are reluctant to decrease them again due to concerns about potential future uncertainties. It is essential for the government to intervene and guarantee that Nigerian citizens can take advantage of reduced fuel costs," he recommended.
Efforts to get a response from the Federal Competition and Consumer Protection Commission were unsuccessful as officials contacted on Sunday declined to comment. However, consumer rights activists are calling on the government to intervene and monitor price regulations.
Many Nigerians are facing increased economic hardships as traders and transporters persist in not lowering their prices.
A schoolteacher from Surulere, Lagos, Mrs. Taiwo Adeyemi, expressed her frustration:
Everything comes at a premium price! While fuel prices have decreased, the cost of food, transportation fees, and rents remain steep. This situation is challenging for us. It’s time for the government to take action.
Provided by Syndigate Media Inc. ( Syndigate.info ).
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