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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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jdpumping
jdpumping
1 year ago

Have I ever witnessed a strike that really worked for its purpose no,not in Nigeria my country and why now same reoccurring problem of inflation in petroleum problems has always been a big threat to us and yet we can’t fynd a lasting solution Africa largest producer of oil my foot.

Adeolastan
Adeolastan
1 year ago

It is very unfortunate that a country like Nigeria have such big amount of oil deposit and yet no refinery to turn it to finished product and some set of few people seat on continue to milk the country dry.

Abusi
Abusi
1 year ago

To what extent are we having petroleum inflation again in this country. Fuel is already getting scarce and it is now sold at a high rate per litre. Still, inflation is going to affect the Oil sector again?
What is the ministry of petroleum doing.

Hassan Isa
Hassan Isa
1 year ago

It’s encouraging that Nigeria is the continent’s leading oil and gas producer and the leading supplier of crude oil and petroleum products to the United States.

Chibuzor
Chibuzor
1 year ago

Through the earnings and profits it generates, the petroleum industry has made a significant contribution to Nigeria’s economy and budget in recent years.

Tonerol10
Tonerol10
1 year ago

sets to embark on nationwide protest against hike in petroleum products. This Nigeria don’t want to get it right at all. Petroleum inflation will affect this country at this moment when the country is suffering almost in all the sectors in Nigeria

Chibuzor
Chibuzor
1 year ago

.

Last edited 1 year ago by Chibuzor
Bola12
Bola12
1 year ago

Diesel has the largest demand of all petroleum fuels. This has led to several producers and manufacturers announcing price increases for their wares.

Nwachukwu Kingsley
Nwachukwu Kingsley
1 year ago

The Manufacturing Association of Nigeria is just one group that has announced price increases for its wares and services as a result of the rising cost of diesel.

Taiwoo
Taiwoo
1 year ago

Since the event, the NNPC has made no claims of compensation or apology for the damages caused to Nigerians’ automobiles due to the importation of diluted petroleum.

Christiana
Christiana
1 year ago

As the country’s premier oil management firm, they are solely to blame for the country’s persistent economic woes, including a decline in oil revenues and a sharp rise in the number of poor.

Godsewill Ifeanyi
Godsewill Ifeanyi
1 year ago

Amidst the announcement of the upcoming demonstration, it was highlighted that the incompetence of the NNPC General Manager has caused an unnecessary amount of suffering for Nigerians.

Adesanyaj72
Adesanyaj72
1 year ago

It’s a shame that Nigeria has a sizable oil reserve but no refinery to convert it into a usable form, all while a select few continue to fleece the country.

Tolaniiii
Tolaniiii
1 year ago

Despite the fact that Africa is the largest oil producer on the planet, we still face the same ongoing challenge of cyclical price inflation for petroleum products.

Kazeem1
Kazeem1
1 year ago

In what degree do we once again face price increases for petroleum products in this country? There is already a shortage of fuel, so the price of a liter of it has recently increased significantly.

Haykaylyon26
Haykaylyon26
1 year ago

Inflation is affecting the oil sector, petrol price is high and scare and they say we have petrol in our country and we are still suffering from what we have what a pity no refinery in a whole Nigeria to turn it to usable goods

Iyanu12345ogg
Iyanu12345ogg
1 year ago

Fuel is already getting scarce and it is now sold at a high rate per litre. Still, inflation is going to affect the Oil sector again?
What is the ministry of petroleum doing to the situation on ground?

theApr
theApr
1 year ago

The economy as a whole is threatened by the inflation in the prices of major petroleum goods, in addition to endangering the welfare of citizens. Diesel has the largest demand of all petroleum fuels.

Remi1
Remi1
1 year ago

Many people have gone out of business as a result of the rising cost of diesel, which has also raised the price of goods and services, doubled already raised costs for services in the nation, and generated hyperinflation.

Ultra0711
Ultra0711
1 year ago

It’s tragic that Nigeria, which has a large oil reserve but no refinery to convert it to finished product, is being bled dry by a select few while the rest of the world watches.

SarahDiv
SarahDiv
1 year ago

Nigerians have been passing through serious hardship. Even employee salaries can’t meet up with their monthly demands. Global inflation has crippled the economy. Complete removal of subsidy from our petroleum products will further worsen the situations.