Fuel Subsidy Increases By 307% Amid Transport Fare Hike

The Nigerian National Petroleum Company Limited, NNPC has revealed there was a huge increase in money spent on fuel subsidy between March 2021 to this same month this year.

As contained in some data obtained by newsmen over the weekend, fuel subsidy surged from ₦60.39bn in March 2021 to ₦245.77bn in March this year.

The record was an indication that the amount spent monthly on the fuel subsidy increased massively by 306.97 per cent, Naija News understands.

Within the time under review, the fuel subsidy gulped ₦2.08tn. The NNPC has described its subsidy spending as an under-recovery of PMS/value shortfall.

According to the report, in March, April, May, and June 2021, under-recovery for PMS amounted to ₦60.39bn, ₦61.96bn, ₦126.29bn, and ₦164.33bn respectively.

Between July, August, September, October, November, and December 2021, the NNPC spent ₦103.28bn, ₦173.13bn, ₦149.28bn, ₦163bn, ₦131.4bn, and ₦270.83bn, respectively, Naija News understands.

Figures from the NNPC further showed that the oil firm spent ₦210.38bn, ₦219.78bn, and ₦245.77bn as the subsidy on petrol in January, February, and March 2022 respectively.

The issue of a hike in the cost of transportation has only increased within the period under review despite the said amount spent on subsidy. This is according to an analysis of data from the Transport Fare Watch report of the National Bureau of Statistics.

The NBS report revealed there was a 35.65 per cent, 42.17 per cent, and 45.57 per cent increase in the cost of intercity, intracity, and motorcycle rides respectively.

The report read in part, “The average fare paid by commuters for bus journey intercity per drop rose to ₦3,270.94 in March 2022, indicating an increase of 35.65 per cent (from ₦2,411.29) on a year-on-year, in March 2021.

“Similarly, the average fare paid by commuters for bus journey within the city per drop, increased by 42.17 per cent from N 377.27 in March 2021 to ₦536.35 in March 2022.

“In another category, the average fare paid by commuters for journey by motorcycle per drop increased by 45.57 per cent from N 271.44 in March 2021 to ₦395.12 in March 2022.”

Nigerians travelling to Abuja according to the report by NBS, spent the highest on fares while those going to Edo State spent the least.

It also gave an intrastate that Nigerians in Zamfara State spent the highest while those in Benue State spent the least.

In terms of motorcycle rides, Nigerians in Lagos State spent the highest while those in Anambra State spent the least.

The report read, “At the state level for intercity bus travel (state route charged per person fare) in March 2022, the highest fare was recorded in Abuja with ₦5,000 followed by Adamawa with ₦4,233.33. The least fares were recorded in Edo with N 1,883.33 followed by Bayelsa with N 1,944.44.

“In terms of bus journey within the city (per drop constant route), Zamfara recorded the highest with ₦805.33 followed by Taraba State with ₦700.0. On the other hand, Benue State recorded the least fares with ₦400.0 followed by Anambra State with ₦403.57.

“In March 2022, Lagos state had the highest motorcycle transport fare with ₦618.38 followed by Kwara with ₦614.75. The least fare was recorded in Anambra with ₦191.11 followed by Kebbi with ₦205.63.”

Citizens travelling to South-West states are also said to have spent more on transport while those going to the South-South spent the least.

In terms of intracity, Nigerians spent the highest in North-East and the least in South-East, while for motorcycle rides, Nigerians spent the highest in South-South and the least in North-West, Naija News learnt.