Increase in price of petroleum products will affect purchasing power of consumers -NACCIMA

By allcitynews.ng

The Nigerian Association of Chambers of Commerce Industry Mines and Agriculture (NACCIMA), has expressed concern over rising prices of petroleum products in the country.

Chief John Udeagbala, the National President, who made this known in Lagos pointed out that the rising prices of petroleum products, particularly diesel and aviation fuel, could   possibly be the fallout of the ongoing conflict in Europe, made worse by lack of domestic production capacity to meet demand despite the existence of four refineries.

Udeagbala noted that the  implications of the price hike for the Nigerian economy are far-reaching as the use of these products are entrenched in the production and transportation processes of both the public and private sectors.

“Nevertheless, we do not expect that the shutdown of flights over the scarcity of aviation fuel and the issue of the national grid to bring the economy to a standstill in the short or medium term. Rather, with rising prices we expect rising inflation, a further erosion of the purchasing power of the population and redistribution of wealth that plunges more of the population below poverty line. This is the likely result of the private sector seeking to adapt and adjust to the new realities.”

Reiterating his concern, he called for policy implementation within the energy sector, saying, “We use this opportunity to stress once again our call for incisive policy implementation within the energy sector to limit our economy’s exposure to global shocks and serve as a springboard for sustained economic growth.”