Some experts have expressed concern that the hike in the pump price of petrol could increase malnutrition in the country.
The experts, who said this in various interviews with journalists on Sunday in Abuja, pointed out that the situation could occur due to the increased cost of living for many households.
It was gathered that the Nigeria National Petroleum Company Limited (NNPCL) approved an upward review of petrol pump prices on September 3, raising them from N568–N617 per litre to N897 per litre.
A development economist, Mohammad Nazifi, noted that low-income earners would be hit hardest by the new price due to the likely increase in transportation costs, which would also affect food prices.
Mr. Nazifi warned that the situation could lead to health challenges such as malnutrition and increased food insecurity in the country.
“The rising cost of food and other essentials can lead to malnutrition or food insecurity, particularly among vulnerable populations. These factors can exacerbate health inequalities and strain public health systems,” he said.
According to him, the increased price could contribute to inflationary pressure on the economy, causing the cost of agricultural production to rise.
“The increase in Premium Motor Spirit (PMS) prices contributes to overall inflationary pressure. Nigeria’s inflation rate is already high at 34.19 percent as of September 2024. As transportation and production costs rise due to higher fuel prices, these costs are passed on to consumers, leading to higher prices across the board. This can create a cycle of rising costs and wages, potentially leading to cost-push inflation, which further erodes purchasing power and can slow economic growth,” he explained.
An economic expert, Mr. David Ambi, also highlighted that petroleum prices are a critical determinant of inflation, particularly in economies that heavily rely on petrol for transportation and agricultural production.
He maintained that rising fuel costs typically lead to higher expenses throughout the agricultural supply chain, which, in turn, affects the prices of goods and services, including food.
“This phenomenon is known as ‘cost-push inflation.’ Higher transportation and production costs lead to more expensive goods, from food to consumer products,” he said.
A public analyst, Bulus Dabit, added that the increase in fuel prices could exacerbate poverty by reducing the purchasing power of citizens, particularly low-income households.
“The increase in pump prices may disproportionately affect vulnerable populations such as the poor and marginalized, who may not have the means to absorb the additional costs,” he noted.
Mr. Dabit also criticized the decision to increase the prices, arguing that it was driven by external and personal economic interests rather than scientific economic imperatives.
He suggested that any decision on such matters should involve consultations with citizens and be predicated on empathy, justice, accountability, patriotism, and nationalism.
Charity Bello, Secretary of the Small-holder Women Farmers Organisation in Nigeria (SWOFON) in Plateau, emphasized that as long as petrol prices keep increasing, food prices would not drop.
Ms. Bello added that food prices could stabilize if the government addresses insecurity in rural communities, where most farming activities occur, in addition to a downward review of the cost of petrol.