3rd September, 2024
By Emmanuella Anokam
An Economic Expert, Dr Sand Mba-Kalu said the sudden increase in pump price of petrol by the Nigerian National Petroleum Company Limited (NNPC Ltd.) would have a far-reaching impact on Nigeria’s private sector, trade and the already suffering Nigerian masses.
For one, Mba-Kalu who is the Executive Director, Africa international Trade and Commerce Research said the hike in petrol price by NNPC Ltd. from N617 per litre to N897 litre will push more Nigerians into poverty.
The economist spoke on Tuesday in Abuja while reacting to the decision of the NNPC Retail Management to approve upward review of the pump price of petrol from N617 per litre to N897 litre, effective from Sept. 3, amidst economic hardship and persistent fuel scarcity.
NNPC retail stations have adjusted their pumps and totems (price boards), reflecting new petrol price of N897 against N617 per litre while independent marketers are selling between N930 to N1,200.
Mba-Kalu said without government interventions, the economic and social repercussions of this price hike could be severe and long-lasting, pushing more people into poverty.
“What we will witness is the immediate high cost of transport, which will lead to higher costs of food and inflation.
“In the long term, it could pose challenges for small and medium-sized enterprises (SMEs) and the agricultural sector,” the expert said.
He urged the Federal Government to acknowledge these implications and consider measures to reduce the impact, such as targeted incentives for energy efficiency, stopping wasteful spending, and reducing cost of governance.
“Without such interventions, the economic and social repercussions of this price hike could be severe and long-lasting, pushing more people into poverty,” he warned.
Mr Chris Nzeh, a motorist, who condemned the development, describing it as crazy, said what had been going on in Nigeria under the current government would only suffocate Nigerians.
“How do they want the average man to survive?
“We were told that with the removal of fuel subsidy, petrol will be available everywhere in Nigeria, but today, it appears NNPC Ltd. is scamming Nigerians.
“They are the sole importer of petroleum and they have refused to make refinery work and you ask yourself what is going on in Nigeria.
“Nigerians should rise and save this country from collapse,” he said.
(NAN)
