Transport fares drop in October despite PMS price hike

The drop in transport fares during the period comes amid the increase in the fuel pump price which has greatly influenced the transport industry within the past months.

The drop which was experienced in comparison to prices paid in September 2023 covered the following categories: bus journey within the city per drop constant route; bus journey intercity (state route) charge per person; air fare charge for specified routes single journey; journey by motorcycle (Okada) per drop; and water way passenger transport.

According to data from the NBS October transport fare watch, the average fare paid by commuters for bus journeys within the city dropped from ₦1,337.80 in September to ₦1,117.30 indicating a 16.48% decline.

However when compared on a year-on-year basis, there was a 75.45% increase from ₦636.83 recorded in October 2022. 

In another category, the amount paid by passengers for an intercity bus drop also dropped from ₦5,917.16 in September 2023 to ₦5,885.68 in October 2023. This figure indicated a 0.53% decline when compared with the figures recorded in September 2023. However, when compared on a year-on-year basis, the fare showed a 53.04% increase from ₦3,845.81 in October 2022. 

Figures for air transport also witnessed a decline as the average fare for a single journey on specified routes in October was ₦78,778.38. This indicated a 0.30% decrease compared to the previous month (September 2023). However, the fare rose by 7.62% on a year-on-year basis, from ₦73,198.65 in October 2022.

The average transport fare paid on Okada transportation dropped by 21.51% to ₦507.30 in October 2023; the average fare paid for water transport (waterway passenger transportation), in October 2023 also dropped by 0.79% to ₦1,395.68.

The recent figures sharply contrast with the transport situation just after the removal of fuel subsidy in May, an action which greatly spiked transport fares across the country.

According to the NBS, between May 2023 and June 2023, the average transport fare within Nigerian cities surged 98% from ₦649.59 to ₦1,285.41.

The NBS October transport fare watch report, however, showed Nigerians may have chosen an alternative mode of transportation which has led to the reduction of prices by motorists.

The NBS data showed that the price of PMS did not reduce during the period of review as the average retail price of Premium Motor Spirit (PMS) increased by 0.71% from ₦626 recorded in September to ₦630 in October 2023.