As Nigerians try to adjust to the new pump price of premium motor spirit, PMS, some residents of the Federal Capital Territory, Abuja are lamenting the economic impact of the latest increment.
The new pump price of N1, 030 per litre, the second increase in a month, by the Nigeria National Petroleum Company Limited, NNPCL, represents about 14.8 percent or N133 rise.
However, in private fuel station owners are selling at N1, 100 per litre in Abuja.
Some residents who spoke to The Abuja Inquirer said the frequent increase in petroleum pump price is insensitive and adding to the plight of already overburdened citizens.
The NNPCL on October 9 adjusted pump price across it retail outlets in the FCT bringing the product from N897 per litre, to N1,030 per litre.
The N133 price hike has since sent prices of goods and services, especially food prices off the roof.
An economist, Samaila Garba, fears that the constant increase in petrol price has the tendency of pushing more Nigerians into poverty.
Garba, who also runs a delivery company in Abuja, said that the frequent increase could have a far-reaching impact on small businesses, as it could lead to uncertainty in the private sector.
“It is unfortunate that we are experiencing these intermittent increase in petrol prices. The impact on the economy is almost immediate and we are already witnessing rise in transportation, which will lead to higher cost of food.
“In the long run businesses will suffer and some may fold up and inflation will rise.
“In the long term, it could pose challenges for small and medium sized enterprises and the agricultural sector.
“I am already considering shutting down my delivery business to face other things, because the increase in price of fuel will mean we have to adjust our rates and also improve staff salaries,” he said.
The economic expert called for urgent government interventions, warning that the economic and social consequences of the price hike would be severe and send more people into poverty or even crime, if not checked.
“It is not enough to increase pump price because the sector has been liberalised. The government will also have to provide some incentive in for if palliative to make the migration easy on the people. Without such interventions, the impact of these price hike could push more people into poverty or even crime.” he said.
A trader at the Dutse-Alhaji Modern Market, Ukamaka Godwin, said the constant fuel hike is creating uncertainty in her business.
“Lately we are no longer sure how much it cost to move goods from the warehouses to the market. That was what happened to me last week.
“I had concluded bargain with the transporter who was to bring goods for me only to get a call from him that he was at the fuel station that fuel had increased so we have to discuss new price.”
She complained that the high petrol price is affecting the cost of living, forcing families to adjust.
“Even though I sell bags of rice, we have to adjust in my family.
“Before I could afford to take a bag home whenever we are out of stock, but now such decisions will take close to N100,000 from my business. A business that is already affected by the harsh economy.”
A federal government retiree, Felix Odingbu, call for urgent government action to put an end to the high cost of living.
He asked government to create more job opportunities for the youths so as to keep them away from crime and also ease the burden on their parents.
“The truth is that many pensioners are still the ones taking care of their children because the Nigerian youths have no jobs.
“It’s sad that we still have to use our pension money to fend for our children even when they are graduates, because there are no jobs for our children.
“Government should do something. Our pension is yet to reflect the new minimum wage increase yet fuel price has increased twice in the last two months.
“I know that the government can do something for the masses to make it easier, because also have to survive,” she said.
A food vendor, Mrs Ann Okeke, said that the increase in petrol prices has affected the price of food items and cost of transportation.
“I am finding it difficult to balance my budget because every day the price of food stuff increase but I cannot willfully increase the price of a plate of food else I will lose my customers.
“Two months ago we sold a plate of food for N1500. When fuel rose to N897, we had to increase our plate to N1, 800, now with this new increase we should be selling a plate for at least N2, 000, but I am afraid most of my customers who work around here have opt for bringing their lunch from home so we are still selling a plate of food for N1800 but we had to reduce the potion. Even at that, we ate barely getting by.”
A taxi driver, Olagunju Sheriff, said a number of transporters may abandon the business for other venture as the business is no longer profitable.
“I will just stop this business and look for something else to do because we are the most affected whenever there is price hike. Our transport fares increase are never commensurate to the increase in fuel prices yet passengers complain that the price of transport is too high.
“What choice do we have when we are buying fuel for N1,250 per litre? Bwari to Berger was N1200 last week, now it is N1500, while Kubwa to Berger which was N800 is now N1,000 which is not supposed to be so.”