Motorists and commuters across the country have lamented the hike in petrol pump price by the Nigerian National Petroleum Corporation Limited just as ActionAid has warned that the new increase will sink Nigerians deeper in to poverty. On Monday, the NNPCL increased the pump price from N617 to N897 at its outlets. On Wednesday, filling stations dispensed petrol between 970 and N1,100 in Jos. While many filling stations did not sell petrol, there were long queues at NNPCL Mega Stations across the country. A motorist, Ruth Hoke, described the recent increase as the “highest level of insensitivity by the NNPCL and the federal government.” Ms Hoke said Nigerians were undergoing excruciating pains due to the current high cost of products and services, yet they were now being punished more with another increase in the price of petrol. She expressed worry that the prices of unaffordable goods, causing untold hardships, would witness an astronomical increase due to the recent hike in petrol.
Meanwhile, ActionAid Nigeria, AAN, Wednesday, warned that price regime will will push millions of Nigerians deeper into poverty and worsen the current economic situation. The Country Director, AAN Andrew Mamedu, in a statement signed by himself, condemned the sudden hike of pump price of PMS plunging Nigerians into deeper economic woes and excruciating pains. He said “in May 2023, just before President Tinubu’s inauguration, petrol prices were already high at N185 per litre, causing widespread discontent among Nigerians due to the accompanying high cost of goods. However, on his first day in office, fuel prices skyrocketed to N500 per litre, leading to a sharp surge in the prices of essential commodities. Since then, fuel prices have continued to rise steadily. By August 2023, it reached N626.70 and continued to fluctuate, surmounting N668.3 in January 2024 and N770.54 in July 2024. As of September 2024, it has increased again to a staggering N897 per litre, which greatly worsens the situation for many Nigerians.
“Clearly, Nigeria’s fuel pricing is heavily influenced by the dollar-to-naira exchange rate due to the country’s reliance on imported fuel, which is denominated in US dollars (USD). ActionAid Nigeria strongly condemns this development, which will push millions of Nigerians deeper into poverty. We demand transparency in fuel pricing, including a clear breakdown of costs and revenues associated with fuel imports, refining, and distribution. The Federal Government must provide a detailed explanation of the fuel pricing mechanism to ensure accountability and trust. Consequently, a depreciation of the Naira against the dollar leads to higher fuel import costs, resulting in increased prices at the pump as well.This direct correlation between exchange rates and fuel prices makes Nigeria’s fuel pricing vulnerable to exchange rate fluctuations.
“Any changes in the dollar-to-naira rate will have a ripple effect on fuel import costs, ultimately impacting the prices consumers pay at the pump, and highlighting the need for a more stable exchange rate to mitigate the volatility in fuel pricing. It is one thing to fix an impending problem of inflation in the economy, and it is another thing to provide temporary solutions to keep the mouths of Nigerians shut.” However, while acknowledging the minimum wage has increased from N30,000 to N70,000, AAN boss pointed out that, “It fails to address the root causes of inflation and does little to alleviate the suffering of Nigerians, who continue to bear the brunt of skyrocketing commodity prices, particularly fuel costs. We need a comprehensive and sustainable solution, not just a quick fix to silence the masses. To address the root causes of this crisis, we also demand the establishment of an independent committee to monitor fuel pricing and ensure transparency.
“This committee must include representatives from civil society, the private sector, and government agencies. Additionally, the Federal Government must invest in Nigerian refineries and provide targeted support to vulnerable citizens and small businesses affected by fuel price increases. The Federal Government must prioritise the welfare of Nigerian Citizens over revenue generation and provide a comprehensive plan to protect vulnerable citizens and support small businesses within 48 hours.
This plan must include measures to mitigate the impact of high fuel prices on the poor and vulnerable. Concurrently, the Federal Government must implement a comprehensive economic reform plan as soon as possible, including measures to diversify the economy, increase foreign exchange earnings, and stabilise the Naira. This plan should include specific targets and timelines for reducing inflation, improving foreign investment, and promoting local production. We demand transparency and regular progress updates to ensure accountability and build trust with the citizens. ActionAid Nigeria will hold the government accountable for their actions and demand a better future for all Nigerians. We will take all necessary actions to ensure that the government is held accountable to Nigerian citizens.”
