Even though petrol prices have recently decreased, merchants and hauliers throughout Lagos continue to maintain their current pricing, causing frustration among residents who are finding it increasingly difficult to manage their expenses due to the elevated costs of daily necessities.
A survey carried out by PUNCH Metro in various markets throughout Mile 12, Mushin, and Balogun areas of Lagos on Saturday revealed that the cost of basic necessities like groceries, home supplies, and transportation fees remains high. This persistence persists notwithstanding hopes that lower fuel expenses would ease financial pressures.
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 food and transportation have not followed suit.
Previously, I paid ₦800 for the journey from Ojota to Oshodi when fuel cost ₦1,200 per liter. Nowadays, with fuel priced at approximately ₦890, my fare remains unchanged at ₦800. This seems unreasonable. Shouldn’t transportation providers lower their rates?
In Ketu Market, vendors cited elevated transportation expenses and fluctuating fuel rates as reasons for maintaining higher price points. Mrs. Oluchi Nwosu, who sells tomatoes, stated, “Although fuel costs have dropped slightly, transporting items from the Northern regions remains expensive. According to transport operators, they fear that prices might rise once more, which is why they continue to charge us at current levels.”
However, commercial drivers argue that elements other than petrol prices influence their fare rates. Mr. Yusuf Lawal, a danfo driver, informed PUNCH Metro that the expenses for vehicle upkeep and replacement parts remain elevated.
“The costs of engine oil, tires, and various components haven’t decreased. If we lower transportation fees at present and fuel prices increase the next day, we would bear the brunt of this situation. It’s important for Nigerians to recognize that factors beyond just fuel influence transport pricing,” he stated.
Experts suggest that the sluggish movement of prices in Nigeria can be attributed to the country’s economic framework. According to Dr. Tope Aluko, a financial analyst, product and service charges usually escalate rapidly with rises in fuel prices 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 firms are reluctant to decrease them again due to fears of impending uncertainties. It is essential for the government to intervene and guarantee that Nigerians 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 experiencing increased economic struggles due to the unwillingness of traders and transport providers to lower their costs.
A schoolteacher from Surulere, Lagos, Mrs. Taiwo Adeyemi, expressed her frustration:
Everything comes with a hefty price tag! While fuel prices have decreased, the cost of food, transportation fees, and rents remain elevated. This situation is causing significant hardship for us. It is imperative that the government takes action.
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