Veritatis Gaudium: Multidisciplinary Journal of Postgraduate Studies

This study examined the effect of price increases in transport business operations and strategic efficiency, using Etsako, Auchi, Edo State, Nigeria, as the focus area. The study adopted a descriptive survey research design. The population comprised 3,120 commuters of Etsako West Transport Company. The sample size of 355 was determined using the Krejcie and Morgan sample size determination formula. Data were collected through a structured questionnaire and analyzed using descriptive statistics, Pearson Product Moment Correlation, and Multiple Regression Analysis with the aid of the Statistical Package for Social Sciences (SPSS). The findings revealed that fuel cost, and fare rate, and operational overheads all had significant positive effects on transport business strategic efficiency. The correlation analysis showed significant relationships between the price increase variables and strategic efficiency indicators, while the regression analysis revealed that the independent variables jointly explained the variation in transport business operations. Fuel cost emerged as the strongest predictor of business operation. The study further found that although fare increases helped sustain revenue generation and customer patronage, they did not completely offset the negative effects of rising operational costs on profit margins and operational efficiency. The study concluded that price increases significantly influence transport business operations. The study recommended that transport business operators adopt strategic fuel management practices to improve operational efficiency and maintain transparent pricing policies.

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