The increase in pump price of Premium Motor Spirit (PMS), commonly known as petrol, by the Federal Government from N86:50 to N145 per litre is unsettling for many Nigerians, especially local manufacturers who buy petrol daily to power their generating sets for production. When Sunday Vanguard visited the office of Manufacturers Association of Nigeria (MAN) in Lagos, to get reactions from members, some manufacturers said that the new petrol price will have negative effect on the industrial sector of the economy, especially at the time when the nation’s economy is on the verge of recession.
In a chat, the Chairman, Toiletries & Cosmetics group of MAN, Mr. Ikpong Umoh, said, “When it comes to the issue of petrol, we must be sincere because fuel scarcity disconnects manufacturing activities, adds to the cost of production much more than availability of the product. Government must openly tell us whether we are still operating a subsidy regime or not. A hike in fuel price from N86.50 to N145 is a huge increase of about almost 80 percent. Government and oil marketers would have added only a marginal increase and not a huge increase that will worsen inflation rate that is already 13.2 percent (double digit). This is because petrol affects the cost of transportation, food items, pharmaceutical products and all sectors of the entire economy. This huge increase in fuel price will have adverse effect on local industries that are already closing shop due to harsh operating environment.” Read More
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