The Federal Government has formally confirmed the return of fuel scarcity, as the Petroleum Products Pricing Regulatory Agency (PPPRA), increases fuel price in Nigeria to N212.61 per liter last week, for the month of March. The new fuel price in Nigeria, according to the Petroleum Products Pricing Regulatory Agency (PPPRA) is supposed to start from March 1st and run till the end of March 2021. The announcement came as a surprise as NNPC already promised that there will not be any fuel price increment in the month of March.
The announcement comes in the middle of a partial scarcity of fuel that has remained for weeks. There had been concerns that the government, which says it has deregulated the sector and no longer pays subsidy, would raise rates as crude oil prices have seen a bounce in the global market.
Even though the Nigerian National Petroleum Corporation (NNPC) had already said the price of fuel would remain static in March. This is to allow smooth communication between the government and labour unions. PPPRA’s reason for the increment of petrol is as a result of the international market uncertainty. Another reason for the fuel hike is the fluctuating exchange rate.
As the fuel price in Nigeria increases, other basic needs of Nigerians including transportation and the cost of goods and services, are also expected to increase in price. This will make it more difficult for the average citizen especially without any increase in their salaries or wages.
Nigerians have reacted and are calling for a protest against the increment of fuel price. Afterward, the PPPRA pulled down the earlier notice about the fuel price hike and they released a press statement which a lot of Nigerians says is unacceptable. In the press statement, they said that the Guiding Prices posted on their website were only indicative of current market trends and do not translate to an increase in the pump price of petrol.
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