Business
High Cost Of Diesel Worries LAGBUS
The Management of the LAGBUS Asset Management, operators of LAGBUS, on Wednesday urged the Federal Government to look into the high cost of diesel.
LAGBUS Managing Director, Babatunde Disu said that the high cost of the fuel and its scarcity were affecting the firm’s operations.
Disu told newsmen in Lagos that diesel, which sold for N105 per litre six months ago, was currently being sold for between N160 and N170 per litre.
He said apart from the price increase, the product had become very scarce.
“We are calling on the Federal Government to help look into the issue of diesel as the high cost and its non-availability is killing the transport business”, Disu said.
He said the problem of sourcing the product would result in an increase in fares in order to sustain the business.
The Tide source says that LAGBUS early this month planned to increase fares from July 1, but Disu said the hike had been deferred till later in the month.
“The increment will come later in the month (July) as the management is still looking at the modality of its take off,’’ he said.
Disu also lamented the high cost of maintaining the buses.
“We do not want to downsise our workforce and we cannot afford not to pay them. “We cannot always be running to the government for financial assistance and that is why we have to make a slight increase to make ends meet,” he said.
He appealed to commuters to bear with the management to ensure that LAGBUS remained in business.