The Federal Government Increased the price of fuel to N145 on Wednesday 11th of May to the dismay of some Nigerians. A lot of the people who were angered by this increase believe it will translate to hardship for poor Nigerians. Their concerns are very real with inflation rate set to rise when the National Bureau of Statistics releases its inflation numbers in June 2016. Before then, we already anticipate price increases for a number of goods and services which we believe will immediately take effect.
Transport Cost – Reports reaching Nairametrics already suggest that the intracity transportation cost in Lagos and around the country skyrocketed on Thursday. Transport operators did not hesitate to increase their prices even though some of them bought petrol at the former pump price. Think about your school bus for kids, transport to work and back, driver etc.
Food cost – The cost of food items and perishables are also likely to rise in the next few days as sellers factor in the impact of the fuel increase on their margins.
Diesel Cost – Immediately after the fuel price increase was announced, most filling stations quit selling fuel. However, they still sold diesel but at an increased pump price of between N145 to N155 per liter. Oil marketers wasted no time in increasing the price.
Hair Salons/Corner Shops – Most hair salons and barber shops rely on smaller generators to power their business when there is no light from the discos. Their generators mostly use fuel to run their Generator which they will likely recover by increasing their price. Corner shops that sell everyday goods will also be affected as they also run on generators.
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Kerosene – Even though the price of kerosene has been deregulated for sometime now, we expect a further price increase just the same way the price of Diesel has gone up.