The recent hike in the pump price of Premium Motor Spirit (PMS), commonly known as petrol, has triggered widespread outrage among Nigerians, compounding the already escalating cost of living. Effective this week, the price surged from N586 to N897 per litre, with reports indicating prices may reach as high as N1,400 in some areas. This unprecedented increase has sparked fears of further inflation and economic hardship for millions across the nation.
The latest adjustment comes amid a backdrop of soaring inflation rates, which have reached alarming levels. Current data from the National Bureau of Statistics indicates an inflation rate of 34.19% as of June 2024, with food prices experiencing an even sharper rise at 40.87%. The new petrol prices are expected to exacerbate these trends, driving up costs for essential goods and services and placing additional strain on household budgets already stretched thin by rising expenses.
Families and small business owners are particularly hard-hit. Mrs. Arinola Olusoji, a frozen food trader and mother of two, expressed her distress: “I’m finding it difficult to balance my budget. The increase in petrol prices has added to my transportation costs, and I’m struggling to afford necessities like food and rent.”
Commercial transport operators are also feeling the pinch. Mr. Johnson Odumakin, a bus driver in Lagos, lamented that his operational costs have skyrocketed due to the fuel price hike. “Passengers have been complaining that transport fares are too high,” he said. “But what choice do we have when we are buying fuel for N1,300 per litre?”
Economic experts warn that this latest increase will not only diminish purchasing power but could also push more Nigerians into poverty. The Lagos Chamber of Commerce and Industry has highlighted concerns that small and medium-sized enterprises (SMEs) may struggle to survive under these conditions, leading to potential job losses and business closures.
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, stated, “The timing of this increase is regrettable and does not consider the prevailing economic conditions.” He urged the government to reassess its economic policies to alleviate the burden on citizens.
As citizens grapple with these challenges, calls for government intervention are growing louder. Stakeholders from various sectors are advocating for the reintroduction of fuel subsidies or alternative energy solutions to mitigate the impact on everyday life.
The situation is further complicated by Nigeria's ongoing economic reforms aimed at deregulating the oil sector. While these reforms were intended to attract foreign investment and stabilize the economy, they have instead led to increased financial strain on households and businesses alike.
As Nigerians brace for what many fear will be a prolonged period of economic hardship, it remains crucial for government officials to engage with citizens and stakeholders to develop strategies that will alleviate the burden imposed by these rising costs.