08/03/2026
PETROL PRICE INCREASE: PRESIDENT TINUBU IS NOT TO BLAME
Onwuasoanya FCC Jones, PhD
The pump price of petrol has increased very much in the last few days and the effect is biting hard on ordinary Nigerians. Yet, analysts believe that this is still the early days, because the prices of petroleum products including, PMS, LNG, Diesel, jet fuel, etc, will continue to rise, for the foreseeable future.
Already, the price of the Premium Motor Spirit, which obviously has the most impact on ordinary masses has already risen by about 25% in the last one week. Some filling stations are selling a liter of the product for as high as 1,200 Naira while some are selling a little less. But, the bad news is that, if nothing is done by diplomats to quickly resolve the crisis in the Middle East as quickly as possible, then, we must brace ourselves for higher gas prices and its concomitant ripple effect of inflation across markets.
The easy thing for people to do would be to blame the APC led federal government for the hardship that might arise from this increment, but the reality is that, neither the Nigerian federal government nor President Bola Tinubu shares any blame from this situation. The war by Israel and the USA in Iran is entirely to blame. The simplest way to understand deregulation of the petroleum sector is that "market forces, rather than government actions, would determine the price of petroleum products.
The war raging in the Middle East has hit the oil market heavily as oil prices surge above 25% in the last one week since the war started. Besides the fact that the war is disrupting oil flow across the world because of Iran's position as one of the biggest producers of oil in the world, other Gulf countries who are bearing direct brunts of the war are also major oil producers. Also, oil supply across the world is seriously impacted with the attacks on ships in the Strait of Hormuz, which is the route through which a good number of oil vessels travel from to supply oil to countries of the world.
Dangote would be helpless in raising the price of his products because instead of purchasing a barrel of crude oil at less than 70 dollars he is now purchasing a barrel at above 90 dollars and it is believed that this price will still rise further as the war in Iran continues and the instability in the Middle East persists.
Already, the present administration has introduced a number of programs to alleviate the impact of the removal of subsidy, and it is expected that the majority of Nigerians will have little to complain about as regards this surge in oil prices. With the rise in the price of crude would come an appreciable increase in the monies available to be shared by the different arms of government and this shall positively impact on the economic performance of the country, which would in effect reduce the poverty rate in the country as government channels funds into critical areas that shall benefit the ordinary masses.