CNG buses not enough to tame transport crisis, HURIWA tells FG

By Chioma Obinna

The Human Rights Writers Association of Nigeria, HURIWA, has urged the Federal Government to complement its Compressed Natural Gas, CNG, transportation initiative with measures to reduce the cost of petrol and other energy inputs driving transportation and production costs across the country.

HURIWA said the Federal Government’s directive to state governors to reduce transportation fares through expanded CNG and electric-powered public transportation programmes could provide relief for commuters, but should not be treated as a substitute for broader measures to address high energy costs.

In a press statement by its National Coordinator, Emmanuel Nnadozie Onwubiko, yesterday, the organisation called for greater transparency in the pricing of petrol and measures capable of making energy costs more affordable for households and businesses.

It also urged the Federal Government to consider measures that could move petrol prices towards the levels recorded before the current period of elevated fuel costs, while taking into account the fiscal implications of any intervention.

The call followed President Bola Tinubu’s directive to the 36 state governors to ensure measurable reductions in transportation costs from October 1 through expanded CNG and electric-powered public transportation programmes.

HURIWA said cheaper-energy buses could help reduce fares on routes where they operate, but argued that high energy and transportation costs also affect manufacturing, agriculture, food distribution, logistics, construction and small businesses.

According to the group, increases in transportation and energy costs are ultimately reflected in the prices of goods and services.

It therefore urged the Federal Government to pursue a broader energy-cost reduction strategy alongside the CNG initiative.

HURIWA said state governments could provide transportation interventions but could not independently address all the structural factors affecting fuel prices and the wider downstream petroleum sector.

The organisation urged the Federal Government to explore fiscal, regulatory and market-based measures capable of stabilising energy costs without returning to a subsidy regime that could impose unsustainable pressure on public finances.

It also called for greater transparency in the petrol pricing structure, including the components relating to crude oil, refining, importation, transportation, margins, taxes and other applicable charges.

“Nigerians deserve to understand the factors determining the price they pay at the pump and the measures being taken to make energy more affordable,” HURIWA said.

The group welcomed the expansion of CNG conversion centres and alternative-energy transportation, but said the initiative should form part of a wider economic strategy.

It noted that reducing transportation costs alone would not address the pressures facing manufacturers, farmers, traders and households from high energy and logistics costs.

HURIWA expressed particular concern over the impact of persistent energy costs on manufacturers, saying businesses facing rising production and logistics expenses could be forced to scale down operations, increase prices or suspend production.

It consequently urged the Federal Government to accelerate efforts to expand domestic refining capacity, promote competition in the downstream petroleum sector and introduce targeted measures to reduce energy costs for manufacturers, farmers, transport operators and households.

The organisation also appealed to state governments implementing transportation interventions to ensure that the benefits reach commuters and are accompanied by transparent monitoring.

HURIWA called for consultations involving the Federal Government, state governments, labour, manufacturers, transport operators and civil society organisations on measures to reduce energy and transportation costs.

It said the objective should be to improve household purchasing power, support domestic production and make transportation more affordable.

“CNG is part of the solution, but it should be complemented by broader measures to address the factors driving energy and transportation costs,” the group said.

The post CNG buses not enough to tame transport crisis, HURIWA tells FG appeared first on Vanguard News.