By Owei Lakemfa
Fuel prices in Nigeria went up an average 40 percent within days of the United States, US, and Israel attacking Iran. Diesel prices went up 50 percent. This development shot up prices of transportation, and more Nigerians who cannot afford the price hike took to trekking.
Mr. Peter Obi, former Anambra State Governor, lamented the plight of Nigerians and the devastating effects on industry caused by recurring fuel price hikes. He argued that these rapid increases illustrate how vulnerable to external shocks the country’s economy is, and how quickly we are impacted by foreign events. In his analysis: “The reason for this is straightforward: most countries, whether they are oil-producing or non-oil-producing, maintain strategic petroleum reserves to cushion against supply or price shocks. This means that when there is a disruption in the global oil market, they can release part of these reserves to stabilise supply. However, Nigeria lacks such a buffer, so the impact is felt almost immediately.”
