Economic and financial analysts have warned that the new template published by the Petroleum Products Pricing Pricing Authority (PPPRA) on Friday was an indication that a hike in the price of fuel was inevitable.
The analysts at Financial Derivatives Company Limited in their review of the state of the economy predicted an increase in fuel price by April.
They warned that an increase in the price of PMS (petrol) will further push up inflation as disposal income will be eroded by high cost of transportation.
According to them, there will be nationwide protests and disruption of business operations if an increase in fuel price is announced.
This is against the backdrop of the announcement made by the PPPRA that projected the price of petrol at N212.11 per litre.
READ ALSO: No Directive To Hike Fuel Price – Oil Marketers
According to the template the agency published but has now deleted, the ex-depot price of petrol is N206.42/litre while the landing cost stands at N189.61/litre.
The analysts said, “A further increase in PMS price would stoke inflationary pressures as transports costs climb and erode consumer disposable income,
“The announcement is a warning sign to Nigerians to prepare for another increase in the retail price of petrol. Labour unions have been warning against the hike and the NNPC announced that there would be no price hike of petrol in March.”
“The average Nigerian consumer is already battered with high living costs including the increase in the price of food items and the electricity tariff hike.
“A major risk to this is widespread protests from the masses that if mismanaged, could halt business operations and lead to destruction of properties.”
READ ALSO: PPPRA Template Puts Petrol Price At N212/litre
Meanwhile, the Minister of State for Petroleum, Timipre Sylva, has apologised for the increase in price of petrol that was announced by PPPRA, saying the hike is completely untrue.
According to him, the decision did not get his approval or that of President Muhammadu Buhari.
He called on marketers to maintain the current price and urged Nigerians to disregard the misleading information.
