Bolt is contemplating a fare increase in Lagos due to a substantial 45.38% rise in the price of Premium Motor Spirit (PMS), which has surged from N617 to N897 per litre. This comes in the wake of two months of persistent fuel shortages and the Nigerian National Petroleum Corporation (NNPC Limited) admitting to financial difficulties.
Thank you for reading this post, don't forget to subscribe!The recent fuel price increase is the second major adjustment since the removal of fuel subsidies in May 2023, which saw prices triple from approximately N200 per litre. In response, Uber and Bolt had previously raised their base fares by 40% and 17%, respectively.
“Starting June 2, 2023, ride prices in Nigeria have been adjusted due to increased operating costs for drivers using Bolt,” the company stated.
With rising fuel costs expected to impact operating expenses for ride-hailing drivers, Bolt has already increased fares in Abuja, where the minimum fare rose from N1,300 to N1,495 and the starting fee increased from N737 to N884. Similar adjustments are anticipated in Lagos and other cities, according to Femi Adeyemo, Bolt’s communication manager. “We need to analyze the situation to ensure fares remain fair for drivers while not overly burdening riders,” Adeyemo said.
Some riders are already reducing their use of ride-hailing apps due to the high costs. Olawale Adedeji, for instance, found the fare from Ogba to Eko Hotel to be N16,000 and opted for cheaper public transport options instead. Others have shared their experiences on social media, highlighting significant cost differences between ride-hailing services and public transportation.
The Amalgamated Union of App-Based Transport Workers of Nigeria had previously expressed dissatisfaction with the initial fare hikes, calling for a 200% increase and a minimum fare of N2,000.
Future fare increases will likely be influenced by Nigeria’s challenging macroeconomic conditions, including an inflation rate of 33.4% as of July 2024. Analysts at Comercio Partners Research have noted that high inflation, particularly in food prices, has eroded purchasing power and negatively impacted consumer spending, which is crucial for economic growth.
