₦airaland Forum

Former presidential candidate Peter Obi has blamed the recent sharp increase in petrol and diesel prices in Nigeria on the country’s lack of strategic planning, warning that external shocks to the global economy quickly affect local prices.

In a statement issued on Thursday, Obi highlighted the impact of the ongoing US-Iran conflict on global oil markets, saying, “A few weeks ago, petrol was selling for less than ₦1,000 per litre, but today it costs over ₦1,200 per litre.

Diesel, which was also priced below ₦1,000 per litre, is now over ₦1,500 per litre. These rapid increases illustrate how quickly external shocks can affect the Nigerian economy.”

Obi explained that most countries maintain strategic petroleum reserves to cushion their economies against supply or price shocks, but Nigeria lacks such a buffer.

The former presidential candidate’s warning comes as petrol prices hit about ₦1,300 per litre in various parts of the country on Monday following a hike in gantry prices at the Dangote Petroleum Refinery from ₦995 to ₦1,175 per litre. Some stations were reported selling petrol for as high as ₦1,350 to ₦1,400 per litre.

Economists and members of the Organised Private Sector have warned that the price surge could trigger inflationary pressures on goods and services, forcing businesses to adjust budgets and pricing strategies to cushion the impact on consumers.

The OPS urged the Federal Government to strengthen efforts to boost local refining capacity and find innovative ways to tackle recurring fuel price spikes.

The Nigeria Labour Congress also criticised repeated petrol price hikes, while international developments, including potential emergency oil reserve releases by G7 nations, were cited as attempts to stabilise global oil supply.

Obi concluded his statement with a call for structural reforms, saying, “The old maxim remains true: when a country fails to plan, it has already planned to fail,” emphasising the need for long-term planning to insulate the country from global shocks and protect the economy from sudden price hikes.

Obi concluded his statement with a call for structural reforms, saying, “The old maxim remains true: when a country fails to plan, it has already planned to fail,” emphasising the need for long-term planning to insulate the country from global shocks and protect the economy from sudden price hikes.

EponObi:
The oil or petroleum product that is a major source of revenue in this nation is what you want to store so much that will cushion the effect of this war?

How many barrels or liters you wan reserve?

How many days will it last?

Shey na from our low output na him we wan dey reserve?

If we reserve, the government release it into the supply chain, no be the same price the FG go sell to Dangote? Abi you are talking of subsidy?

With regards what the GCC and US are doing with their SPR; daily crude supply globally is 100m barrels per day. With the situation at the strait of Hormoz, 20m is cut out. The GCC and US plan to release 400m barrels from their SPR to support global supply; that will meet demand and crash price. But that can only helpul for 20 days alone. Just 20 days.

So what then can Nigeria viably do with her "reserve" to cushion this price hike?

BTW, there's no scarcity in Nigeria. Dangote is steadily meeting our demand. Just that global oil price has increased.

There's no where on earth where strategic reserve is a solution to price hike caused by global conflict long term; it's always a short term solution. During the Iraqi war, the supply crunch (about 1m barrels per day was out) wasn't even terrible like this one and price hiked like crazy for a long time.

yarimo:
So lack of planning made you to increase poverty rate in small anambra state as governor abi ?

Parachoko:
Peter Obi should stop all this his Hypocritical statements.

Segunbabba:
Former presidential candidate Peter Obi has blamed the recent sharp increase in petrol and diesel prices in Nigeria on the country’s lack of strategic planning, warning that external shocks to the global economy quickly affect local prices.

In a statement issued on Thursday, Obi highlighted the impact of the ongoing US-Iran conflict on global oil markets, saying, “A few weeks ago, petrol was selling for less than ₦1,000 per litre, but today it costs over ₦1,200 per litre.

Diesel, which was also priced below ₦1,000 per litre, is now over ₦1,500 per litre. These rapid increases illustrate how quickly external shocks can affect the Nigerian economy.”

Obi explained that most countries maintain strategic petroleum reserves to cushion their economies against supply or price shocks, but Nigeria lacks such a buffer.

The former presidential candidate’s warning comes as petrol prices hit about ₦1,300 per litre in various parts of the country on Monday following a hike in gantry prices at the Dangote Petroleum Refinery from ₦995 to ₦1,175 per litre. Some stations were reported selling petrol for as high as ₦1,350 to ₦1,400 per litre.

Economists and members of the Organised Private Sector have warned that the price surge could trigger inflationary pressures on goods and services, forcing businesses to adjust budgets and pricing strategies to cushion the impact on consumers.

The OPS urged the Federal Government to strengthen efforts to boost local refining capacity and find innovative ways to tackle recurring fuel price spikes.

The Nigeria Labour Congress also criticised repeated petrol price hikes, while international developments, including potential emergency oil reserve releases by G7 nations, were cited as attempts to stabilise global oil supply.

Obi concluded his statement with a call for structural reforms, saying, “The old maxim remains true: when a country fails to plan, it has already planned to fail,” emphasising the need for long-term planning to insulate the country from global shocks and protect the economy from sudden price hikes.

https://punchng.com/lack-of-planning-behind-nigerias-fuel-price-hikes-peter-obi/

SkyBizzy:
What do u mean by hypocritical statement please?
You guys should stop supporting rubbish Pls.

Parachoko:
Nah People like You supporting the Agulu fraud they support Rubbish

SkyBizzy:
Tribalism has eaten u up so deeply

I'm glad we are all in this together

Christmyhope:
I don't like people who often play to the gallery. I often asked ' what is your own economy policies for the country?"

If the present government is doing badly, what are your plans?

Parachoko:
What do you mean by the bolded?

I'm calm and collected, you're the one wailing bitterly.

Antoeni:
Be Gay Or Join APC

EponObi:
This guy will just open mouth anyhow to say rubbish. He never says anything reasonable about our issues. Always vague without substance.

He knows nothing. Nothing about this country. Nothing about geopolitics.

How does a nation prepares for external shock from a war in far away Iran?

The hike in gas and diesel in the US is because of lack of planning too?

This same war is causing the price of urea (fertilizer) to spike all over the world, na lack of planning too?

For someone who advertises himself as a market-to-market businessman, he knows nothing about supply and demand.

LNG spiking over 90% in Europe since the war started, na lack of planning too?

If you ask him how he would have planned if he was president, na rubbish him go talk too.

This dude is nauseating. Tueh!



How can Nigeria insulate herself from global shocks like this when no be say na we dey set price of oil or control price of oil? Maybe we should exit OPEC and start drinking our oil. Mtchew!

Sheuns:
Tinubu increased poverty rate in Nigeria by 63% when he removed subsidy.

Just as he increased poverty rate in Lagos by 69% when he was governor.

Say something else.

Segunbabba:
https://punchng.com/lack-of-planning-behind-nigerias-fuel-price-hikes-peter-obi/