Pressure don mount on the Federal Government as the conflict between United States and Iran dey push global crude oil prices go up, making petrol price rise sharply for Nigeria. Industry operators, economists, labour unions and private sector leaders don call on government make dem introduce economic relief measures to help Nigerians and businesses cope with the rising fuel cost, warning say the increase in petrol, diesel and aviation fuel prices fit worsen inflation and deepen hardship across the country.
Reports show say petrol price don climb reach between N1,200 and N1,300 per litre for different parts of Nigeria, while industry players warn say if the Middle East crisis continue, petrol price fit pass N1,500 per litre and even approach N2,000 per litre. The conflict involving United States, Israel and Iran don enter its third week without any clear sign of peace, raising fears say crude oil prices fit continue to climb.
Meanwhile, Dangote Petroleum Refinery don blame the Middle East crisis for the recent increase in its petrol gantry price. Before the war start, petrol price from the refinery dey below N800 per litre, but as crude oil price jump from about $68 per barrel to over $103 per barrel, the refinery increase its price reach about N1,175 per litre.
The Independent Petroleum Marketers Association of Nigeria don advise government make dem reduce some taxes and charges on petroleum products to help bring down pump price. According to IPMAN spokesman Chinedu Ukadike, marketers dey pay several levies to agencies like Nigerian Maritime Administration and Safety Agency, Nigerian Ports Authority and Nigerian Midstream and Downstream Petroleum Regulatory Authority, and reducing these charges fit help lower fuel price. He also urge government make dem repair petroleum pipelines so fuel transportation go cheaper instead of depending mostly on trucks.
Members of the organised private sector say instead of bringing back fuel subsidy, government should invest more in compressed natural gas transportation and support local refining. The President of the Lagos Chamber of Commerce and Industry, Leye Kupoluyi, say Nigeria should use the extra revenue from higher oil prices to strengthen domestic refining and alternative energy sources like CNG so that pressure on petrol demand go reduce.
Economic expert Muda Yusuf also advise government to introduce fiscal incentives for operators in the petroleum value chain to reduce production costs and encourage investment. He add say government should invest more in mass transportation systems and improve electricity supply so Nigerians no go depend too much on petrol and diesel generators.
Meanwhile, the Nigeria Labour Congress don call for urgent government intervention, warning say Nigerian workers already dey struggle to cope with the rising fuel prices. In a statement signed by its president, Joe Ajaero, the union say workers dey suffer the effects of a global crisis wey dem no create and demand measures like wage awards, cost-of-living allowance, tax relief for low-income earners and expanded social support programmes.
Investment expert Ayodeji Ebo say although Nigeria dey benefit from higher crude oil prices because government revenue go increase, the development also dey raise the cost of refined petroleum products for consumers. According to him, crude oil dey currently trade between $95 and $105 per barrel, far above Nigeria’s budget benchmark of about $65 per barrel.
He warn say diesel price don also surge to about N1,700 to N1,800 per litre, something wey fit increase transportation, logistics and production costs across the economy. Analysts say if the trend continue, inflation fit rise by between three and five percent, meaning say even though government revenue go increase, ordinary Nigerians go face more pressure as the cost of living continues to rise.