An Economic Expert, Dr Sand Mba-Kalu, has said the fuel price hike by the Nigerian National Petroleum Corporation Limited from N617 per litre to N897 litre will push more Nigerians into poverty.
Mba-Kalu who is the Executive Director, Africa international Trade and Commerce Research, who was speaking during an interview Tuesday in Abuja said the sudden increase in Premium Motor Spirit pump price by the NNPCL was beyond a simple fuel price adjustment. He stated that it would have a far-reaching impact on Nigeria’s private sector, trade and the already suffering Nigerian masses.
The NNPC Retail Management has approved upward review of the pump price from N617 per litre to N897 litre, effective September 3, amidst economic hardship and persistent fuel scarcity.
Checks showed that the NNPC retail stations had adjusted their pumps and totems (price boards), reflecting new PMS price of N897 against N617 per litre while independent marketers were selling between N930 to N1,200.
“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 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.
