Local

Increase In Diesel Prices Will Affect Fuel Hike – Experts

Increase In Diesel Prices Will Affect Fuel Hike – Experts

Increase In Diesel Prices Will Affect Fuel Hike – Experts

Increase In Diesel Prices Will Affect Fuel Hike – Experts

According to analysts at the Lagos Chamber of Commerce and Industry and the Centre for the Promotion of Private Enterprise, the recent increase in the price of gasoline may not be felt right away because of how quickly inflationary pressure is expected to grow in the economy due to the rising cost of diesel.

ALSO, READ Report On Hike In Overseas Tuition Fees From 2023 Is False-CBN

Following what is thought to be a covert deal between Federal Government officials and oil marketers, Premium Motor Spirit, more commonly known as gasoline, will now be sold between N170/liter and N190/liter in filling stations across the country.

The price increase comes after many weeks of shortages, which prompted fare increases in all of the nation’s major cities. Fuel marketers had said at the time that it was no longer feasible to sell the product at

ALSO, READ Fuel Sells At N175/Litre, Marketers Plan Strike, Queues Get Worse

Speaking on how the hike would affect organized businesses, the Chief Executive Officer of the Centre for Promotion of Private Enterprise, Dr. Muda Yusuf, described the decision by the oil marketers and the Federal Government as a necessary compromise that would prevent a complete collapse of the supply chain.

Increase In Diesel Prices Will Affect Fuel Hike – Experts

Asked if the new pump price might trigger higher prices in the marketplace, Yusuf said, “Not necessarily, because, before now, the disruption that had been created by the inability of the marketers to distribute at N165 had already pushed the price above N200. Outside Lagos and Abuja, I can tell you that people are buying fuel for N190, N200 plus.

ALSO, READ

If you compare that to the N180 that is now the benchmark, people are still better off. In terms of the impact on price, I don’t see any considerable adverse effect that this will have compared to when you allow the system to collapse completely.”

Also speaking, the Deputy-President of the Lagos Chamber of Commerce and Industry, Mr Gabriel Idahosa, said the inflation that was already being created by the significant increase in prices of diesel and kerosene would naturally eclipse the marginal increase in the price of PMS.

ALSO, READ

He said, “Because the diesel price has gone so high already, the fuel price increase from N165 to N180 may only reflect in some movements in the general public transportation who use petrol for their vehicles, but in terms of any significant impact on inflation, it will not be there.”


24SevenHUB.CO brings updates on the latest news, tech tips and information, job recruitments for Nigerians, foreigners and remote jobs for seekers, and much more… Here, you can read and share thoughts, ideas, and opinions and get real-time updates from around the globe.

Related Articles

Leave a Reply

Back to top button
error: Alert: Content is protected !!
%d bloggers like this: