The Independent Petroleum Marketers Association of Nigeria (IPMAN), Enugu Depot Community has warned that the continuous increase in the price of petroleum products, especially diesel, can lead to inflation and instability in the country’s economy.
Chairman of the IPMAN Enugu Depot Community, Chinedu Anyaso, described the development as unhealthy, adding that the hike might lead to a stiffer hardship for Nigerians.
He noted that diesel price in Awka and its environs has increased from N400 per litre about two weeks ago to N650.
According to him, the increase is not unconnected to the rise in the price of crude oil in the international market as a result of the conflict in Eastern Europe between Russia and Ukraine.
He further expressed concern over the effect of this development on growing businesses and startups.
“We are worried about the rise in the price of diesel and other petroleum products, it is affecting our members because each time we go to the depot, there is an increase.
“It will certainly lead to the worse inflation in recent years because AGO is the major source of fuel for most transporters and manufacturing companies,” he said.
He also noted that the downstream sector relies completely on importation, adding that this might pose a huge problem, should the Russia/Ukraine war persist.
While enjoining the Federal government to take urgent steps to fix the country’s refineries or build new ones, he assured that IPMAN would continue to ensure seamless distribution of available products in the South-East at the prevailing market price.
Investors King had earlier reported that the International Monetary Fund (IMF) noted that Africa is particularly vulnerable in the Russia-Ukraine crisis, as the war has affected the region in four major channels – increased food prices, higher fuel costs, lower tourism revenues, and potentially more difficult access to international capital markets.
In view of this, the IMF has expressed willingness to help African nations reduce the cost of any needed policy adjustments by advising governments on policies, capacity development, and lending.
