Economic expert warns ₦897 fuel price will drive more Nigerians into poverty

The expert said the sudden increase in Premium Motor Spirit (PMS) pump price of the Nigerian National Petroleum Company Limited (NNPC Ltd.) was beyond a simple fuel price adjustment. He said that it would have a far-reaching impact on Nigeria’s private sector, trade and the already suffering Nigerian masses.

Mba-Kalu, the Executive Director of Africa International Trade and Commerce Research said this in an interview with the News Agency of Nigeria (NAN) on Tuesday in Abuja.

NAN reports that NNPC Retail Management has approved an upward review of the pump price from ₦617 per litre to ₦897 litre, effective from September 3, amidst economic hardship and persistent fuel scarcity.

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Checks by NAN revealed that the NNPC retail stations have adjusted their pumps and totems (price boards), reflecting a new PMS price of ₦897 against ₦617 per litre while independent marketers are selling between ₦930 to ₦1,200.

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 the 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.

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, fuel 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 stated.