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Businesses across Nigeria are preparing for a potential surge in inflation following a sharp increase in petrol prices, which have risen to about ₦1,300 per litre in several parts of the country.
Economists and members of the Organised Private Sector (OPS) warn that the development could significantly increase operational costs for businesses, forcing many companies to review pricing strategies to cope with the rising cost of transportation, logistics, and production.
The increase in pump prices came after the Dangote Petroleum Refinery raised its gantry price for Premium Motor Spirit (PMS) from ₦995 to ₦1,175 per litre, marking the third upward adjustment within a week amid volatility in global oil markets.
Following the revision, filling stations quickly adjusted their retail prices, with petrol selling between ₦1,250 and ₦1,400 per litre in some locations across the country.
Business leaders warn that the development could trigger higher transport fares, increased food prices, and rising production costs, thereby worsening inflationary pressures in the economy.
Economic analysts also note that Nigeria remains vulnerable to global oil market shocks, particularly during periods of geopolitical tension, as international crude price increases often translate into higher domestic fuel prices.
Meanwhile, labour groups have criticised the repeated adjustments in petrol prices, saying the situation is further worsening the cost-of-living challenges facing many Nigerians.
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Oyetoke Adedayo Ebenezer
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