Following the exponential increase in the pump price of diesel from N187 to N830/litre, Governor Babajide Sanwo-Olu has approved a flat rate increase of N100 in bus fares for all Bus Rapid Transit (BRT) and Standard routes with effect from July 13, 2022.
The fare increase is reportedly aimed at ensuring sustainability of the BRT and standard route schemes in the state.
With the increase, a bus ride from Ikorodu – TBS will now cost N600 from N500 while Berger to Ajah will cost N700, up from N600. Oshodi to Abule Egba will cost N450 from N350 and Abule-Egba-CMS-Obalende will attract a fare of N600.
The Assistant Director, Corporate Communication at the Lagos Metropolitan Area Transport Authority (LAMATA), Kolawole Ojelabi in a statement lamented that the operations of the transport scheme has recently been hampered due to rising cost of inputs required for sustainable service offering and the attendant high number of buses out of operation as a result of lack of spare parts.
He also stated that the exponential increase in the pump price of diesel from N187 to N830/litre between August 2020 and June, 2022, has greatly affected optimal performance of the bus operating companies leading to the withdrawal of some buses from operation and longer waiting time at bus stations.
Ojelabi made known that Sanwo-Olu in consenting to the fare increase also approved a proposal for a bailout for the bus operating companies to cushion the effect of the harsh operating environment, safeguard private partnership investment as well as forestall the demise of formalized bus operations in the state.
“In view of the continuous increase in fuel price, the government is providing support for the Bus Operating Companies. This is to ensure that the increase to the passenger is kept to a minimum,” he said.