By Felicia Udeji
Barely three weeks after the last price hike, Nigerians expressed outrage as the Nigerian National Petroleum Company Limited (NNPCL) once again raised petrol prices. The national oil firm adjusted the pump price in Abuja to N1,060 per litre from N1,030, while in Lagos, it went from N998 to N1,025. This latest increase, marking the third price change in two months, has led to significant backlash from citizens, private sector groups, and civil society organizations.
Why are Nigerians facing such frequent price hikes, and what does this mean for everyday living costs?
The price hike coincides with the Dangote Petroleum Refinery’s complaints about continued imports of petrol by oil marketers and NNPCL, despite the refinery’s production capabilities. Aliko Dangote, president of Dangote Group, expressed frustration, urging marketers to buy locally produced petrol and reduce dependence on imports. Experts worry that the hike will escalate inflation, which is already at a record high of 34.2%, further worsening the economic strain on Nigerians.
NNPCL’s decision aligns with the government’s deregulation policy, allowing fuel prices to fluctuate with supply and demand. However, this policy has left Nigerians vulnerable to price surges, and many say it’s pushing the cost of living beyond reach. Some social media users expressed resignation, while others criticized the government for allowing fuel prices to rise unchecked.
Industry leaders warn that the fuel price increase will raise transportation costs, thereby affecting food prices, production costs, and overall inflation. Segun Kuti-George, Vice President of the Nigerian Association of Small-Scale Industrialists, highlighted that the hike could drive more Nigerians toward cheaper foreign goods, harming local industries. Meanwhile, business leaders at the Nigerian Association of Chambers of Commerce and other groups are concerned that inflationary pressures from these price hikes will worsen poverty and limit household purchasing power.
Amid these challenges, experts argue that fuel price hikes are exacerbated by the naira’s declining value and ineffective monetary policies. They urge the government to stabilize the currency and block corruption leaks to mitigate economic hardship.
What measures can the government take to alleviate the impacts of these price hikes on everyday Nigerians?
On social media, Nigerians expressed frustration with the government’s repeated price increases, with some predicting fuel prices could reach N1,500 per litre by December. Others encouraged citizens to boycott fuel stations as a form of protest. Civic groups and economists called for stronger government action to curb corruption and stabilize the naira, while voices within the private sector suggested finding a balance between commercial and social priorities.
With inflation, unemployment, and fuel prices on the rise, how much longer can Nigerians endure these economic pressures?
