Over the past couple of months, car owners in Nigeria have had to rethink how they use their vehicles following the consistent fuel price hike that has left many (those with cars and those without) thinking up creative ways to shoulder the harsh realities accompanied by the fuel subsidy removal.
Table of Contents
Within three months, fuel prices in the country have shifted from N190/per Litre to over N617/per litre, leaving many with no choice but to learn to adapt. As such, if a fuel tank could be filled with N15,000 earlier in the year, owners of the same care will have to cough out about N55,000 for the same quantity of fuel.
Have 1 million naira and above to Buy or Sell Cars In Nigeria?Check carlots.ng RIght Now RIght Now
Speaking on the matter, Daily Trust noted:
“For instance, an average four-cylinder Sedan car like Toyota Corolla with a 2.0-litre engine takes 50-litre fuel while the six-cylinder engine takes about 80-litre fuel. By implication, the owner of a six-cylinder vehicle needs over N40,000 to fill the fuel tank. For those using eight-cylinder SUVs or Jeeps like the V8, they are expected to pay more with the current cost of fuel.”
Interviewing a Lagos-based car owner, the man identified as Mr. Lucky Osaho told Daily Trust that he decided to sell his Lexus RX 350 2010 model at a giveaway price just to raise money to buy a four-cylinder vehicle.
He said: “I sold the car for N3m because I wanted to raise money to buy a smaller vehicle. I am thinking of a Toyota Corolla car which has four cylinders and I can conveniently cope because of this high cost of fuel. My brother, buying fuel at N500, you have to be prudent in your movement. It is not going to be easy for any car owner because you have other competing needs. Can you afford to spend all your earnings on fuelling? We have a situation where prices of commodities are increasing but incomes are not increasing. Fuel has increased by over 400 per cent but the incomes have not increased. So, you have to prioritise.”
This new reality has not only impacted car owners but has equally affected the public transportation system within the country. A bus ticket from Aba to Lagos that would cost roughly N15,000 earlier in the year, has seen over a 100% increase, leaving even public transportation a thing of luxury that the average Nigerian cannot afford.
Amidst all these rising costs of fuel and transportation are Nigerians who have had to grapple with these difficult times without a salary increase. The effect is many who have been forced to leave their cars at home, use public transportation, as against fueling their vehicles. However, there are still those that even with public transportation cannot make ends meet with their static salary.
Speaking to Nairametric earlier in July, a lady, named Sarah John told the publication that she had had to quit her job as a secretary at a small real estate firm in Benin, Edo. Sarah explained to the publication that she got the job with the aid of her father after all efforts to find a job after graduating from a Polytechnic were abortive. However, the young lady revealed to the Nairametric that she quit the job after being unable to make ends meet with her N20,000 monthly salary ($23) and the rising cost of transportation to and fro her workplace.
The publication also noted that in the Wuse area of Abuja, many salespersons earning N17,000 to N25,000 at a Plaza had quit their job due to an N1,000 daily transportation fare they’ve had to grapple with.
While the Nigerian government has proposed a palliative of N8,000 (less than $10) to support and enable Nigerians to cushion the blows of the fuel subsidy removal, the reality is that it has not only affected current car owners in Nigeria, but the nature of car ownership within the country as many who cannot afford a daily upkeep have little-to-no-time to spare thinking of purchasing a car, especially considering the high prices of cars in the market.
To many Nigerians, especially those growing up at a time when the country has had to deal with these harsh economic realities, it feels like the system has already been rigged against them. As such, even car ownership is out of the question for most young Nigerians.
Have 1 million naira and above to Buy or Sell Cars In Nigeria? Check carlots.ng
All rights reserved. Reproduction, publication, broadcasting, rewriting, or redistribution of this material and other digital content on carmart.ng is strictly prohibited without prior express written permission from Carmart Nigeria - Contact: [email protected]
