The African Democratic Congress (ADC) has asked the federal government to introduce a “temporary and time-bound cap” on petrol prices to prevent further increases that could worsen the cost of living for Nigerians.
In a statement on Wednesday, Bolaji Abdullahi, ADC’s spokesperson, said the recent hikes in petrol prices reflect rising volatility in global oil markets.
“The African Democratic Congress (ADC) calls on the Federal Government to immediately introduce a temporary and time-bound cap on petrol prices to prevent further increases that continue to push the cost of living beyond the reach of millions of Nigerians,” Abdullahi said.
“Recent hikes in petrol prices reflect rising volatility in global oil markets, driven in part by the ongoing crisis in the Middle East.”
However, he said the ADC believes that external shocks cannot justify allowing fuel prices to spiral without restraint “in an already fragile economy that continues to reel from the consequences of the Tinubu-led APC government’s abrupt removal of the fuel subsidy”.
President Bola Tinubu announced the end of the petrol subsidy on May 29, 2023, during his inauguration, but Nigeria fully exited under-recovery payment when it deregulated the downstream sector in October 2024.
The Middle East conflict has ushered in unprecedented volatility in the global market as crude oil prices crossed $100 per barrel on Monday — the highest level since July 2022 — before easing to $87 on Tuesday.
Iran, on Wednesday, warned that global oil price would reach $200 a barrel, threatening to prevent oil shipments from passing through the Strait of Hormuz.
Following the spike in crude oil and ex-gantry petrol prices, retail stations’ pump prices have skyrocketed, resulting in transport fares doubling on some major routes in Nigeria.
Dangote Petroleum Refinery, on Tuesday, reduced its ex-gantry petrol price to N1,075 per litre — after three previous hikes. However, pump prices remain elevated.
