Title:
HOW COMPETITION IS DRIVING PRICE INELASTICITY IN THE NIGERIAN HAULAGE MARKET

Authors:
C.Chris Ofonyelu and Pius Isah, Nigeria

Abstract:
There is an intricate relationship between haulage pricing and diesel price change in Nigeria. The consensus in the literature suggests that change in diesel prices will always lead to changes in haulage pricing. However, the explanations did not recognize the role of competition and technology in affecting the relationship. This study examined the strength of the relationship between haulage pricing and diesel price change in Nigeria under three conditions: (a) with competition (b) with competition and new technology (c) with only new technology. The findings from the study showed that competition and technology reduce the elasticity between diesel and haulage pricing. Technology was seen as a stronger factor than competition in the relationship. The study suggests an increasing inelasticity between diesel price and haulage pricing in Nigeria using the period between 2010 and 2025 as a case study. Sustainable economic reforms in the oil sector must be competiveness and technology driven.