New Petrol Pump Price Raises Cost Of Living Crisis

The hike in petrol prices from N897 to N1,030 per litre is exacerbating Nigeria’s already dire economic situation.

Experts warn this increase will push more citizens into poverty, intensifying the ongoing cost-of-living crisis.

With inflation soaring to 33.95 per cent, food prices have surged, leading to widespread hardship among families reliant on fixed incomes.

Many are struggling to afford basic necessities, with reports of rice prices exceeding N100,000 per bag.

Citizens and economists alike urge the government to implement measures to alleviate the financial burden on households,

This is as some consumers of eggs and meat have decried the persistent rise in the price of the eggs and various kinds of meat especially livestock.

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An economic expert, Dahiru Garba, said that the fuel price hike from N897 per litre to N1, 030 per liter would push more Nigerians into poverty.

Garba said that the sudden increase in the pump price of petrol by the Nigeria National Petroleum Company Limited (NNPC Ltd.) and marketers 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.

He said that without government interventions, the economic and social repercussions of the price hike would 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 cost of food, businesses will suffer, some may fold up and inflation will rise.

“In the long term, it could pose challenges for small and medium-sized enterprises (SMEs) and the agricultural sector,” he said.

He urged the federal government to acknowledge these implications and consider measures to reduce the impact.

He suggested targeted incentives for energy efficiency, a halt to wasteful expenditure, and reducing 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 said.

A retired widow, Mary Chatta, complained about the high cost of living.

“My children are not working, they still depend on my pension which has not been increased according to the minimum wage act.

“Imagine buying one bag of rice for over N100,000. We no longer feed daily, I am scared and I do not know how I will survive,” Chatta said.

She urged the government to look into the economic situation in the country.

“I know that the government can do something for the masses to make it easier, but pensioners also have to survive.” Chatta said.

A frozen food trader, Oyiza Malik, said that the increase in petrol prices has added to her transportation cost.

“I am struggling to afford necessities like food and rent. I am finding it difficult to balance my budget

“We expected so much from this government, but what we are seeing now is the least we expected.

“The situation is even more dire for low-income households who are already struggling to survive on meagre earnings,” she said.

A taxi driver, Emeka Uzor, said that the price hike had taken away the little savings he had, as he no longer made profit.

“I will just stop this business and look for something else to do.

“Passengers have been complaining that the price of transport is too high, but what choice do we have when we are buying fuel for N1,250 per litre.

“From Banex to Gwarimpa is now N500 and it used to be N200, from Kubwa to Berger between N1,000 to N1,500 which is not supposed to be so,” Uzor said.

Some of them, who spoke to the News Agency of Nigeria (NAN) in Abuja on Sunday, said the price increase was affecting consumption especially for children who needed the protein.

They appealed to the government to assist in curbing the high prices to meet the purchasing power of consumers.

A consumer, Christiana Agede, said that a kilo of cow meat which was formerly sold between N4500 and N5000, now goes for between N6,500 and N7,000.

Agede said she rarely patronised the sellers because of her low purchasing power.

She said that eggs were her family’s respite for meat but had to stop buying when the price skyrocketed

”We now buy brisket bones as an alternative to meat in my house.

”I prefer it because when you buy at least N1,500 worth of brisket bones, it looks bigger and it is more nutritious.

”My children do not like it but I have convinced them to always consume it because of its nutritional value,” she said.

Mrs Henrietta Daniel, a single parent, said the high cost of eggs had made her remove it from the food menu of her children.

”Eggs are too expensive and I can no longer afford them.

”In fact, most times, my children eat without any form of protein in their meals. Though I know it is not good for their growth and age.

”The federal government should help us in finding a lasting solution to these price increases,” she said.

Adaeze Asiji, a consumer, said that the price of chicken had also skyrocketed.

Asiji said that a kilo of chicken formerly sold between N3500 and N4,000 was now being sold between N5,000 and N6,500.

Mrs Elizabeth Adodi, another consumer and a civil servant, decried the continuous increase in the prices of meat.

She appealed to the government to extend the same efforts that helped in crashing some food prices to the livestock sector also.

Everistus Nnamani, a butcher at Mararaba market, said that the increase in price was due to the hike in transportation.

Nnamani said that a big sized cow sold initially for N800,000 now costs between N1 million and N1.5 million.

He said that a medium sized cow, which was sold at between N400,000 and N500,000, now cost between N600,000 and N700,000.

He said that a small sized cow, which went for  between N150, 000 and N200, 000, now goes for N400, 000.

He attributed the constant hike in prices of cattle to the cost of diesel, petrol and insecurity.

”The constant increase in the price of cows is affecting my business. Before now, I buy like six to ten cows and keep them to slaughter and sell them one after another.

”Now, for me to purchase one cow is even difficult because of the price. I spend more money buying one than before and most of my profit goes into buying.

”Another issue that is causing an increase in the price of cows is kidnapping. Bandits now prefer to kidnap trailer loads of cows and sell them than humans,” he said.

A butcher and goat meat trader at Nyanya market, Kelechi Odo, said that the exchange rate was the major cause of the hike in prices of goat.

He said that they usually buy their goats from neighbouring countries like Niger and Cameroon.

Odo said that a small sized goat which initially cost between N15,000 and N18,000 is now being sold for between N25,000 and N28,000.

The butcher said that a medium sized goat is now being sold for between N27,000 and N28,000 when compared to between N20,000 and N22,000 that it was sold.

Odo said a big sized goat now went for between N32,000 to N35,000 as against N28,000 sold before.

Another butcher, Alhaji Yusuf Ali, a dealer of ram at the Kugbo ram market, said that ram was being sold for between N50,000 and N150,000 depending on the size.

Meanwhile, Nigerians are appealing to the federal government to fulfil its promise of providing Compressed Natural Gas (CNG) buses to alleviate the country’s transportation challenges.

The call comes as commuters decry the unbearable effects of increasing petrol prices on their daily expenses.

The commuters expressed frustration over the delayed implementation of the CNG initiative, which was promised to make transport cheaper and more efficient.

Recall that the federal government had pledged to introduce CNG buses after removing fuel subsidies to ameliorate the effects of increased petrol costs on transportation.

However, the recent petrol price hike to N1,030 from N897/litre has exacerbated the situation.

Celestina Andrew lamented, “It feels like a broken promise, and we are suffering. We have resorted to trekking due to the high cost of transportation.”

Commuters like Fatima Isiaka, who rely on public transportation, are disappointed by the government’s inaction.

“We are citizens, not slaves in our own country. The government needs to act fast to alleviate our sufferings,” she said.

Similarly, Tunde Ade, a trader, expressed displeasure at the government’s “inadequate communication” regarding the CNG bus project.

“We are left in the dark and deserve transparency. They should constantly update us on the buses’ status instead of leaving us to our thoughts.

“We expect better from the government. Soon, we will see increased inflation due to the fuel hike.

“We need immediate action from those in power because things are tough, and we cannot afford for them to worsen.”

A laboratory technician, Chidinma Gabriel, said, “I’ve forgotten what it feels like to have a full tank in my vehicle.

“Since this fuel saga, I cannot remember filling my car’s tank, these days, I just top up with whatever little funds I can afford.

“I’ve heard discussions about converting vehicles to CNG, but the cost is unaffordable for ordinary Nigerians,

“I pray the government makes this conversion process affordable for us, so we can find relief from this fuel increment,” she added.

An Analyst, Dr Chijioke Nwosu, emphasised that CNG buses could significantly reduce operational costs and lower fares for passengers, while also providing a cleaner alternative to conventional fuel-powered vehicles.

SOURCE: LEADERSHIP

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