An economist, Prof. Kenneth Ife, says the latest increase in Dangote Refinery’s petrol gantry price will raise transportation and business costs, further weaken household purchasing power and put additional pressure on inflation.
Ife, President of the Institute of Professional Economists and Policy Management (IPEPM), on Sunday September 20, said the increase could also push up food prices as higher energy and transport costs spread across the economy. Dangote Refinery raised its petrol gantry price from 1,265 to 1,350 naira per litre on Sept. 12, its fourth increase since Aug. 21, bringing the cumulative rise to 185 naira, or 15.9 per cent, in 22 days.
He said petrol prices could rise further if global crude prices remain elevated amid supply disruptions and geopolitical tensions. According to him, higher fuel prices would increase transportation and industrial input costs, raise the prices of imported goods and raw materials, and potentially reduce the competitiveness of Nigerian businesses.
Ife urged the Federal Government to avoid a return to petrol subsidies and instead strengthen domestic crude supply to local refineries under the Petroleum Industry Act, while accelerating the expansion of Compressed Natural Gas (CNG) infrastructure and vehicle conversion. He said wider CNG adoption could reduce dependence on petrol and help lower energy costs for households and businesses.
Checks in parts of Lagos on Sept. 20 showed petrol selling for between 1,400 and 1,500 naira per litre at some filling stations.
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