Get Even More Visitors To Your Blog, Upgrade To A Business Listing >>

Why the Increase in pump price of petrol?



Nigeria has a well-known  history of price increment of Petrol from 1978 to 2020. Governments over the years have one reason or the other to adjust the pump price of petrol which most times are higher. The recent announcement of a petrol price hike from N148 to N151 is not new to Nigerians but a time when the world is already grappling with the devastating effect of COVID-19 is a cause for concern. The increment reads “please be informed that a new product price adjustment has been effected on our payment platform. To this end, the price of petroleum motor spirit (PMS) is now one hundred and fifty-one naira, fifty-six kobo (151.56) per litre. This is effective 2nd September2020”.

A visit to many petrol stations shows an adjustment in their pump price with most indicating N180 per litre with only NNPC Mega station indicating N160. This has been greeted with harsh criticisms from different strata of society. The Nigeria labour congress in its reaction had this to say

“This latest increase in the price of petrol is indeed a crass display of complete apathy to the sufferings Nigerians are going through at this time. While other countries also going through the blues of the Covid-19 pandemic are reducing taxes, increasing welfare benefits and providing palliatives to their citizens, our own government is reducing interest rates on savings by the poor, increasing taxes and hiking tariffs on essential goods and services. Nigerians have never had it so bad.”

He added: “It is said that while poor Nigerians are being pilloried by the government of the day with obscene fiscal burdens, those connected to the highest echelons of political power are daily amassing public wealth and rubbing their illicit loot on our faces. Hobbesian state of living appears to be the perfect metaphor for the state of affair today in Nigeria…”




An economics lecturer of the Yobe State University Binta Yahya in her reaction noted how petrol increase relates to the Nigerian economy. She said “For instance, the first aspect is in inflation, you notice that price generally increases. The second one is a change in consumer consumption pattern and the third one is changed in the production process. Everything dramatically increases.

People will try to cut down on cost, but because of the nature of the importance of fuel in the process of production and remember it is also a very important factor of production and remember it is also a very important factor of production. You have to use it to cook, to transport or to power your engines.so for residential and other uses; we find out that it has affected all aspects of life”.

Federal government Gives Reason for the price hike in Petrol

 The minister of state for petroleum resources, Timipre Sylva said as quoted by NAN “Government is no longer in the business of fixing prices for petroleum products we have stepped back”

He further noted “Deregulation will definitely come with few pains, but the survival of the country is paramount “

Nigeria has been faced with  huge subsidy saga laden with corruption charges coupled with the huge infrastructural deficit. The country is richly endowed with natural human resources but its leaders have continually failed to utilize it for its growth and development. 








This post first appeared on Xplore24news, please read the originial post: here

Share the post

Why the Increase in pump price of petrol?

×

Subscribe to Xplore24news

Get updates delivered right to your inbox!

Thank you for your subscription

×