Because Litecoin was designed to be a payment cryptocurrency, its costs must be kept low.
Who wants to pay a one-dollar charge for a five-dollar item?
Fees were always modest, but an upgrade a few years ago reduced them much further; they are now practically non-existent.
It is for this reason that LTC has a daily market cap; people are utilizing it for what it was created for: inexpensive and rapid transactions.
I exclusively use LTC when moving funds from one exchange to another.