June 17, 2024

Nigerian government considering partial subsidy on fuel as inflation hits record level

According to TheCable, President Bola Tinubu of Nigeria might consider a “temporary subsidy” on petrol as crude oil prices and foreign exchange rates continue to rise.

 

The media outlet quoted presidential sources, saying no final decision has been made, but the plan is “firmly on the table” as Nigerians continue to struggle under hard economic realities following the termination of petrol subsidies in May 2023.

 

Despite rising crude oil prices, landing costs, and a drop in the value of the naira, the Nigerian National Petroleum Company (NNPC) Limited announced on Monday that it has no intentions to raise pump rates.

 

The NNPC said this in response to a viral report indicating a proposed move by oil marketers to increase petrol price to about 700 per litre from its current price.

 

Already, labor unions have warned of an indefinite walkout if the price of petrol continues to rise.

 

Nigerians have seen price increases after Tinubu announced the suspension of the expensive petrol subsidy regime.

 

Forex challenges, along with the unrelenting depreciation of the naira have resulted in a sustained increasing trend in the pricing of goods and services.

 

The National Bureau of Statistics also announced that Nigeria’s annual inflation rate has jumped to 24.08 per cent in July from 22.79 percent a month earlier.

 

The NBS said the July 2023 inflation rate indicated an increase of 1.29 per cent points when compared to June 2023 headline inflation rate.

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