In response to ongoing fuel scarcity and financial challenges faced by the national petroleum corporation, Nigeria has raised fuel prices by 40%. The new pump price in Lagos is now ₦897 per litre, up from ₦610. This marks the second significant increase in fuel prices, following the removal of fuel subsidies in May 2023.
The latest hike will impact operating costs for delivery companies and gig drivers, who are already facing financial strain. While delivery companies can adjust prices for their services, gig drivers, who rely on set prices, may struggle. Ride-hailing companies like Bolt and Uber are also cautious about raising prices in a market where consumer incomes are already stretched.
Gig drivers are feeling the pinch of rising fuel costs, with some drivers refusing low-paying rides due to the expenses involved. They have been pushing for fare increases and a reduction in the commission taken by ride-hailing companies. However, the economic challenges in Nigeria make it a delicate balancing act for both drivers and companies.
As the situation unfolds, it is expected that tensions between gig drivers and ride-hailing companies will persist in the coming months. The overall impact of the fuel price increase on drivers’ earnings remains uncertain in the face of Nigeria’s economic difficulties.