The recent fuel price hike in Nigeria which saw pump price increased to ₦855 to over ₦1000 per liter from ₦617 earlier this week has sparked a wide range of concerns and fumes among the general public who are already suffering from the prevalent hardship brought on by the current economic slowdown. The Trade Union Congress of Nigeria (TUC), who has also publicly opposed the increase in the fuel pump price, has warned that social unrest may result from the recent price increased.
This information was revealed in a statement he signed Festus Osifo, the organization’s president, adding that it would exacerbate workforce hardship. The union responded to the hike by demanding that the Nigerian government reverse these decisions promptly, support measures that will bolster the country’s currency, and take prompt action to lessen the hardships of Nigerians. It claimed that the abrupt increase, which was put into effect without consulting key stakeholders, showed a flagrant disdain for the Welfare of Nigerians, especially the working class, who always bears the brunt of these decisions.
Households and business owners criticized the recent price hike.
In addition, the Union argued that the unexpected increase in fuel and energy prices will only make these problems worse, resulting in further suffering and possible societal unrest. The Union further clarified that immediate action from the government is necessary to rebuild public trust and stop the ongoing decline in citizens’ living standards. In the midst of a general unrest in the nation, households and business owners have persisted in criticizing the recent increase in fuel costs as they struggle with the rising cost of living. The Economy has been negatively impacted by the previous significant increase in fuel prices, which has raised the cost of necessities and made life more difficult for many.
Motorists queued for hours at petrol stations in major cities like Lagos, Abuja, Kaduna, Ibadan, Warri, Jos, and Port Harcourt in order to buy fuel, which was scarce in most areas. Many of the commuters were stuck at the bus stops, unable to get to their designated destinations. A number of organizations and political figures including the House of Representatives, the Peoples Democratic Party (PDP), Nigerian Bar Association (NBA), the Coalition of Northern Groups (CNG) and the New Nigeria Peoples Party (NNPP), has urged the federal government to roll back the fuel price increase.
Free market forces determine petroleum prices.
Other groups, including the Nigeria Labour Congress (NLC), Afenifere, the pan-Yoruba socio-cultural and political organization, and some Civil Society organizations (CSOs), have also voiced disgust over the recent price hike and bemoaned the fact that the federal government was forcing Nigerians into even more hardship. On the other hand, the Nigerian National Petroleum Company (NNPCL) asserted that free market forces govern the determination of petrol prices. It explained that the fluctuations in gasoline prices, which were subject to unbridled free market forces as stipulated by the Petroleum Industry Act (PIA), were largely caused by the illiquidity of foreign exchange.
According to President Bola Tinubu, the move to raise petrol prices was “bold and unprecedented” and essential for Nigeria’s development. Petrol prices have risen since Tinubu removed the Subsidies in May 2023, making things worse for Nigerians who rely on fuel for running their cars and generators. This latest price increase occurs just a few days after the 650,000 barrels per day Dangote Refinery in Lagos, began processing fuel after delays due to shortages of crude.
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Relying on previous forecasts, the general public had high hopes that this development will bring the much needed relief to Nigerians who has been greatly suffering due to high prices and limited supply of petroleum products across the nation. However, this may not be the case for Nigerians judging by the current situation, at least not in the short term. It was recently disclosed that Dangote refined petroleum products would not sell below the market price and that the Federal Executive Council (FEC) and NNPC would work together to decide on the refinery’s refined petroleum product pricing strategy.