Saturday, January 24, 2015

Fuel Price Reduction: Why We Won’t Drop Fares – Transporters


Despite the reduction in the pump price of Premium Motor Spirit (PMS) popularly known as petrol by the federal government this week, investigations in various states across the country revealed that there was yet to be a commensurate reduction in transport fares and other commodities, according to Leadership Weekend.

The Federal government had on Sunday last week announced a reduction in the pump price of petrol from N97 to N87. Minister of Petroleum, Mrs. Diezani Alison-Madueke, who announced the price slash, explained that the reduction became necessary due to the consistent slide in the price of crude at the international market.

Unlike what obtains when there is an increase in the price of the product, commercial transport operators are yet to beat down the cost of intra and interstate commuting.

In Adamawa State, Chairman of the Nigerian Union of Road Transport Workers (NURTW) Alhaji Adamu Bello said the price of petrol was still N100 per litre, about N3 higher that the former official pump price of N97. He disclosed that members of his union did not reduce transport fares because the independent marketers did not comply with the Federal Government’s directive of reverting to the new price regime.

He said apart from the NNPC Mega stations that have complied with the directive, the independent marketers had not adjusted their pump prices as they were still selling the commodity at N100 per litre, adding that due to the pressure mounted on the mega stations, long queues stretching several kilometres had surfaced, leading motorists to spend several man hours before getting the commodity.

“There are long queues at the mega stations that have complied with the new price regime as a result of the fact that the independent marketers did not comply with the Federal Government’s directive. Our members spend many man hours at the NNPC Mega stations and sometimes we spend the whole day on fuel queues before obtaining the commodity from such stations.

“We have to resort to buying the commodity from the independent marketers who did not adjust their prices and as such, we cannot reduce our fares and operate at a loss,” Bello explained.

The NURTW chairman however assured that members of his union will review transport fares downwards as soon as they start obtaining the product at the approved official price.

“We will adjust our transport fares as soon as the marketers adjust to the new price regime. We are not happy that up till now marketers could not adjust the pump price making the masses to pay through their noses,” he said and called on the Federal Government to enforce compliance with the new price regime for the masses to enjoy the benefits associated with the price reduction.

In Kogi State, rather than reduce, transport fares have increased to some destinations since the introduction of the new price regime.

Before now, the fare from Lokoja to Abaji used to be N500 but has been increased to N600, while Lokoja to Anyigba which was N600 is now N700.

Leadership Weekend investigation showed that most of the petrol stations including the government-owned NNPC mega station within Lokoja metropolis were yet to adjust their pumps to the new price.

Speaking with reporters in Lokoja yesterday, the secretary of NURTW in Kogi, Kayode Olagbemi, said that motorists were at the mercy of petrol dealers since the Department of Petroleum Resources (DPR) in Kogi state had not enforced the new price.

Similarly, commercial transport operators in Ogun State were yet to reduce transportation fares as at yesterday. Some of them who spoke with our correspondent dismissed the reduction as too insignificant for them reduce transport fare.
They reasoned that if the price had been brought down to N40 or N50 per litre, commercial drivers would not have any choice than to bring down their fares to be commensurate with the new price regime.

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