Experts have warned that, following the presumed full deregulation of Premium Motor Spirit, or petrol, prices may increase again soon after last week’s hike.
The experts based their warning on anticipated further depreciation of the foreign exchange rate and an expected rise in crude oil prices in the international market, according to Vanguard.
“And the increase in the price of crude is a very high possibility, given what is going on now in the Middle East, the geo-political tensions, the looming war between Iran and Israel,” Dr. Muda Yusuf, a renowned economist and Chief Executive Officer of Centre for the Promotion of Private Enterprise, CPPE, said.
Meanwhile, another economist, the Managing Director of Proshare, Mr Shitta-Bey stated that the rising tension in the Middle East could result in surge in global oil and gas prices.
He said, “The escalation of conflict in the Middle East could lead to rising global oil and gas prices, which could further raise the local retail price of petrol in Nigeria.”
Also speaking, the Lead Director, Centre for Social Justice, CSJ, Eze Onyekpere
said the rising cost of PMS will increase the misery and poverty in the country.
The Nigerian National Petroleum Company Limited raised the pump price of PMS by 15% across Nigeria on Thursday.
It is reported that the price at Dangote Petroleum Refinery also rose by 8.8%, increasing to N977 per litre from N898 per litre.
The latest price increase marks the second hike in petrol prices within the past month. Since President Bola Tinubu took office in May 2023, the pump price of petrol has risen by over 411%.
Specifically, from N195 per litre before the President assumed office on May 29, 2023, the price of the product was increased to N448 (Lagos) and N460 (Abuja) in May 31, 2024; N557 (Lagos) and N617 (Abuja) in September 2024; N610 (Lagos) and N897 (Abuja) in September 2024 before the latest increase to N998 (Lagos) and N1,030 (Abuja) in October 2024.
The latest increase, which contradicts expectations that the crude-for-Naira deal between the Federal Government and Dangote Refinery might reduce pump prices starting October 1, 2024, has left many citizens, particularly motorists, frustrated.
Dr. Yusuf, who is the immediate past Director General of the Lagos Chamber of Commerce and Industry, LCCI, however cautioned, “That is why we have to be extremely careful when we are pushing for a complete deregulation of PMS.
“The economy is highly sensitive, you know, to increases in PMS price. The citizens’ welfare is highly sensitive to movements in PMS prices.
“So, there’s a need to be extremely very careful because of the social consequences of further increases in PMS price.”
