Key Points
- Fuel prices have increased to nearly N900 per litre, which ignited concern among the public.
- Associations like the NBA, PDP and House of Representatives made demands for a price reduction.
- The NNPCL made it clear that the prices are governed by market forces and not by the government
- The PDP, labour unions and others say the price hike will deepen poverty and instability.
The sudden increase in fuel prices across Nigeria has aroused the anger and dissatisfaction of the people including political groups. There is an outcry for an urgent reversal by either the government or the Nigerian National Petroleum Company. The new fuel price which was previously N568 per litre has shot up to N897 per litre in some regions. Some regions in Nigeria are even selling at a price higher than N1000 naira. This sudden and inhumane increase in petrol price has resulted in more economic hardship.
Widespread Reaction to Price Surge
The Nigerian Bar Association (NBA) and the House of Representatives, among others have all opposed the hike in the fuel pump price. Some believe that this rise will deepen the burden on inhabitants of the country as they face soaring inflation rates, unemployment and declining currency. These groups are therefore pleading with the presidency to reverse the price back to what it used to be, due to its severe implications on millions of Nigerians who are currently struggling to make ends meet.
Speaking on the increase, Mazi Afam Osigwe the President of the NBA said that it would lead to devastating consequences. ”It will only deepen poverty,” he said, focusing on the fact that the citizens of Nigeria are already “fighting tooth and nail to be able to afford basic needs.”
The leaders of the People’s Democratic Party (PDP) also criticized the increase in the price describing it as thoughtless and demanded that it be reversed. Debo Ologunagba, the National Publicity Secretary of the party, described it saying: ‘This hike is a clear indication of lack of respect for the challenges of every common man in Nigeria.’
Rising Costs Push Nigerians to Breaking Point
This increase in fuel costs could not have occurred at a worse time in the life of Nigerians than now, with the Naira consistently depreciating. Many Nigerians cannot afford basic goods and services due to an extremely high inflation rate which is currently over 30%. And since fuel is a vital element in the life of an average Nigerian, especially in the transportation sector, an increase in its price would greatly affect the prices of commodities in general and other parts of the economy.
NNPCL Explains Market-Driven Price Hike
The Nigerian National Petroleum Company Limited attributed the current prices to free market forces. Adedapo Segun, the Executive Vice President of NNPC Ltd. said in a televised interview that according to the Petroleum Industry Act (PIA), the government does not determine fuel prices. He mentioned that fuel prices are governed by market situation and exchange rates. He further added that the NNPC has been in debt to its suppliers and owes over $6 billion which has led to the scarcity of the commodity and high prices.
Despite his explanation, the public still looks up to the government to make things better. The Nigeria Employers’ Consultative Association (NECA) has alleged that the government is hiding something on local refineries, thus making the situation worse.
