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Petroleum inflation threatens oil sector

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By Mercy Kelani

YCYW sets to embark on nationwide protest against hike in petroleum products.

Nigeria is recorded as the largest producer of oil and gas in Africa and the United States of America’s major exporter of crude oil and petroleum products. Since 1960, the petroleum industry has largely contributed to the economy and budget of Nigeria through its incomes and revenues. According to statistics in February 2021, it was proven that about 9 percent of the overall National Gross Domestic Product (GDP) is contributed by the Nigerian oil sector.

However, inflation of the prices of these petroleum products poses a threat, not only to the livelihood of citizens but to the economy in general. Of all petroleum products, diesel has the highest demand. Resultantly, many producing, and manufacturing companies have announced a surge in the prices of their goods. One of such is the Manufacturing Association of Nigeria which announced a surge in the prices of its goods and services owing to the rise in cost of diesel.

YCYW seeks removal of Mele Kyari as GMD of NNPC.

Surge in prices of petroleum products – petrol, gasoline, and others, Yoruba Council of Youths Worldwide (YCYW), to announce a likely nationwide protest. According to a statement by the Council President, Oladotun Hassan, the protest is accompanied by a request from the group to President Muhammadu Buhari, asking that the General Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC) Limited, Mele Kyari, is sacked from office on the basis of gross incompetence.

Hassan, amidst announcement of the forthcoming protest, noted that the lack of competence of the NNPC GMD has made Nigerians to suffer unnecessarily, hence, Kyari has lost the trust and confidence that was bestowed in him. In his statements, he asserts that himself and his group will protest on behalf of other Nigerians based on the unarguable fact that Mele Kyari’s management of the NNPC is incapacitated and urgently requires a better replacement for the good of Nigerians.

Increase in price of diesel affects the Nigerian economy.

The protest was said to take place on or before November 20, 2022, by Yoruba Council of Youths Worldwide (YCYW). This move, according to YCYW President, was birthed after careful examination of the country’s situation from the very beginning of year 2022. It is believed that the NNPC’s anomaly began with the importation of diluted fuel which led to unbearable damages of Nigerians’ vehicles with no asserted compensation or apology from the NNPC since the incident up till date.

Increased price of diesel has made many individuals run out of business, caused inflated cost of transportation, increased price of goods and services thereby doubling the previously hiked prices of services in the country, hyperinflation. The rise of the price of diesel from N260 per liter towards the end of 2021 to over N750 per liter is greatly affecting the Nigerian economy. As a result, production of goods and services in the country is threatened.

Inflation increases poverty rates in the country.

Additionally, the situation of petroleum in Nigeria became worse with the hiking surge in the price of fuel and diesel to N250 per liter and N750 per liter respectively. Nevertheless, the group believes that there is disruption in the petroleum management due to poor coordination of the NNPC, as it is the highest oil management company in Nigeria and is the only responsible factor for economy imbalance in aspects of petroleum and increasing poverty rates in the country.

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