As petrol prices jumped to about N1,300 per litre in various parts of Nigeria on Monday, businesses across the country are beginning to prepare for a sharp rise in their operational costs.
Confirmed by economists and the Organised Private Sector, they warned that the hike could fuel inflationary pressures, affecting goods and services, while companies scramble to adjust budgets and pricing strategies to cushion the impact on consumers.
Being the effect of the ongoing US-Iran war, a litre of Premium Motor Spirit (petrol) rose to about N1,300 per litre in most filling stations across Nigeria on Monday after the Dangote Petroleum Refinery hiked its gantry price from N995 to N1,175 per litre, sparking fears of a fresh rise in inflation among members of the Organised Private Sector.
As some filling stations also sold a litre for N1,250, N1,350 and N1,400 respectively, OPS warned that the surge in petrol prices could trigger higher transport and food prices. They urged the Federal Government to strengthen efforts to boost local refining capacity and look for ingenious ways to tackle the incessant surge in fuel prices.
This was even as the Nigeria Labour Congress slammed Dangote refinery’s repeated petrol price hikes, while there were reports on Monday that the G7 nations were planning to wade into the crisis by probably releasing emergency oil reserves.
Dangote’s N1,175 per litre petrol price on Monday marked the third upward adjustment within a week. This was as the price of crude hit about $115 per barrel before crashing to $98 later in the evening.
The refinery announced the price hike to marketers on Monday, raising the gantry price of PMS to N1,175 per litre from N995 per litre announced on Friday, representing an increase of N180, or about 18.1 per cent, within three days. It also jerked up the gantry price of diesel to N1,620.