…Cite Inflated Motor Parts Cost
BY KASE GREATNESS
Despite recent reductions in petrol prices, commercial transporters in Nigeria are hesitating to lower their fares, igniting ongoing discussions about the various factors affecting transportation costs across the country.
A prior visit by The Pointer to several filling stations in Asaba, Delta State revealed significant competition among marketers, with prices ranging from ₦1,020 to ₦1,070 per liter.
This marks a considerable drop from last year’s rates, which were as high as ₦1,200 and ₦1,500 per liter. The reduction has brought smiles to many, particularly commercial transporters.
However, transporters argue that although falling fuel costs are beneficial, they do not sufficiently offset other significant operational expenses.
The high costs associated with vehicle maintenance, repairs, and spare parts, all influenced by inflation and the escalating prices of motor components, continue to burden operators.
During a visit to several motor parks, The Pointer gathered insights from drivers about the prevailing situation.
A shuttle bus operator, Mr. Amos Idoko, noted “The cost of motor parts remains elevated, making it challenging for us to reduce fares. Other suppliers are still selling parts at high prices, so we cannot adjust our prices as long as these expenses persist.”
Furthermore, he explained that the unstable economic climate in Nigeria, characterized by unpredictable fluctuations in fuel prices and inflation, has made many transporters wary of lowering fares.
Another commercial transporter, Mr. Thaddeus Omoefe advocated for government intervention to regulate motor parts pricing, which could help lower overall transportation costs.
He urged for policies to monitor motor parts dealers and ensure more affordable pricing for transporters, which could subsequently lead to reduced fares for passengers.
The Pointer learnt that there is a prevailing concern that future increases in fuel prices or other unforeseen economic pressures could undermine their profitability, prompting commercial transport operations to maintain higher fares as a precautionary measure.
In areas with limited transport options, competition is sparse, leaving consumers with few alternatives.
This lack of competition allows transporters to keep their fares elevated, even in light of the recent reductions in fuel prices.
Experts have also pointed out the influence of government policies on the situation.
