“Stretched Wallets: Nigerians Struggle as Fuel Prices Surge Above 80% of Income”
A multitude of Nigerians from diverse backgrounds are expressing their concerns over the burden of increasing fuel costs, which have dramatically surged transportation and living expenses throughout the nation.
NAIJATAB reports that wages have remained unchanged alongside escalating prices for Premium Motor Spirit (PMS), diesel, kerosene, and cooking gas. This has exacerbated the challenges faced by Nigerians.
The effect of the rise in fuel prices is immediate and extensive, influencing transport fares and food costs, even as the overall expense of conducting business has risen significantly.
NAIJATAB reports that in the nation’s capital, petrol is currently priced between N1,300 and N1,450 per litre, while diesel approaches N2000 per litre, mirroring the consequences of global oil price fluctuations.
The increase, propelled by international market pressures and currency shifts, has considerably elevated the cost of living.
NAIJATAB reports that many commuters and drivers are experiencing the strain from the 40% rise in fuel costs, resulting in diminished funds for food and essential items.
The organized labor and other essential stakeholders have warned that if the circumstances are not effectively managed, the benefits from the surge in oil prices could be completely nullified by inflation and economic distress.
Everyone will be affected — Dangote cautions amidst fuel price surge
Africa’s wealthiest individual, Aliko Dangote, has cautioned that the ripple effects of the ongoing conflict in the Middle East between Iran and the United States-Israel would impact everyone if it escalates further.
Dangote, whose refinery operates at a capacity of 650,000 barrels per day, had raised its petrol prices at least five times in March to N1,245 per litre, emphasizing the ramifications of ongoing warfare in the Gulf region.
“If the situation does not de-escalate, we will face significant repercussions. Energy influences everything. From small enterprises like barbers to manufacturers utilizing generators, everyone will experience the consequences if prices continue to escalate,” he remarked.
NLC calls for intervention as petrol reaches N1,400/litre
The Nigeria Labour Congress (NLC) has urged immediate government intervention as petrol prices climb towards N1,400 per litre across various regions of the nation, raising anxieties about intensifying inflation, job losses, and business closures.
This comes in the wake of consecutive price hikes by the Dangote Petroleum Refinery, which has recently increased its ex-depot price to approximately N1,275 per litre, marking its fifth rise in March.
The price escalations have amplified concerns about pricing trends in Nigeria’s deregulated downstream petroleum industry.
In an interview with NAIJATAB, a commercial bus operator, Chinedu Ike, while seeking government assistance, lamented that he allocates nearly all his earnings from passengers on fuel expenses.
“I am allocating almost all my earnings on fuel. Just this morning, I spent over N50,000 on fuel before being able to set off,” he shared.
An Abuja civil servant, who wished to remain unnamed, expressed discontent that nearly his entire salary goes towards transportation.
“We are utilizing nearly our entire salaries on transport. I expended N1,500 traveling to work even after rising very early and reaching the bus stop around 5:30–5:50am,” he said.
Echoing similar feelings, Peter Echo remarked, “It feels as though our salaries are being consumed before we even get a chance to spend them. I now utilize more than 80 percent of my salary just to commute to work.
“After covering transport and providing for my family’s needs, there’s hardly anything remaining. How are we expected to save or make plans?”
In his view, Anthony Ameh stated, “The current crisis is without precedent in recent times, as complaints from our workforce and the public across the country suggest.”
He noted that transport costs have quadrupled for workers traveling from satellite towns around Abuja, including Mararaba, Suleja, Gwagwalada, Kuje, Kwali, Masaka, Keffi, and Abaji.
He urged the government at all levels to respond aptly and implement decisive measures to tackle the soaring fuel prices.
He added that failure to intervene would exacerbate poverty, mental health issues, and economic distress among Nigerian workers.
