The Nigeria Railway Corporation has reduced the number of trips on the Lagos-Ibadan Train Service by about 66.67 per cent, following the hike in diesel price.
This came after the corporation sent recommendations to the Federal Ministry of Transportation for an adjustment in the transport fare on the train service.
Speaking to Punch, Managing Director of NRC, Fidet Okhiria, said though the service was still running, its trips had been reduced due to the persistent hike in diesel price.
Speaking on the impact of the high cost of diesel in the rail sector, Okhiria said;
“The Lagos-Ibadan train service is running but we have reduced the number of trips on that route because of the diesel problem. We reduced the number of trips we are running because of the hike in diesel price.”
When asked whether the NRC would raise its transport fare as a result of the increase in diesel price, the corporation’s boss stated that it was outside the powers of the corporation to hike fares.
Okhiria added that while it is the responsibility of the Federal Government to make such decisions, the NRC makes recommendations for adjustments.
He said;
“We just can’t increase it by ourselves. The government has to do that. We have made some recommendations. But even the recommendations we made, the new price of diesel has overshot our workings as contained in the recommendations.
“However, we don’t want to price ourselves out of market too, because the price of petrol is not increasing as such, rather the increase is little when compared to diesel price. And you know we are competing with transporters on roads.”
When asked the number trips currently being done on the route, the NRC boss said;
“We are now doing two return trips as against six, which by now should have gone to 10. So we run just two trips now due diesel problem.”
Diesel prices have risen by over 300 per cent in a few months, forcing transporters of petrol, who power their trucks with diesel, to threaten strike before the prompt intervention of the Federal Government.
