For an oil producing country to depend largely on importation of petrol for domestic needs is an aberration difficult to justify. It is as confounding as it is exasperating to look elsewhere to bring in products under our feet.
And this current deregulation which will see price of petrol settling at N145 per litre will dislocate many lives. Remember, we are still reeling in pain following scarcity of dollars, with all traders increasing prices on the excuse that the international currency is unavailable.
Now imagine the multiplier effects of petrol price jumping officially above N100 per litre… It will be a litany of woes for average Nigerians!
Here are 7 ways you will feel the pain of price increase in petrol …
1. Cost of transportation will soar
Most vehicles use petrol. Therefore, it will cost more to fuel them. And the cost will be passed on to commuters. So, people will spend more money getting around.
2. Food will become more expensive
Food is moved across the nation in trailers, which mostly use diesel. But smaller traders use smaller vehicles fueled by petrol. So, the cost of transportation is passed on to consumers.
3. Your rent will increase
Your landlord tabulates rent based on what he can exchange it for . Since he is paying more for food and transportation, and more things have their prices multiplied, the tenant pays.
4. More people will be out of job
Apart from the natural law of selection which discourages long commuting at a higher fare, most employers won’t be able to increase salaries since they are battling with skyrocketing costs. So, they down size. And those who live farther from the company are most likely to be retrenched or encouraged to resign.
5. Artisans and small businesses will lose customers, charge more, close down
Artisans depend largely on small generators to power their businesses. And since they have to pass the cost to patrons, they will have fewer jobs to do. Some might be forced to scale down their operations or close their business since power outage is commonplace. Many other small and medium scale concerns will cry and groan and collapse and die.
6. Cost of living will jump through the roof
Many associated costs of living will jump through the roof. From school fees to hospital bills, and more. Life will become brutish, short and unbearable. Many will forgo wants and concentrate on needs they can barely cope with. Hungrier, angrier and unhappy compatriots will walk the streets.
7. Crime will escalate
Petty and opportunistic crimes will escalate as many struggle to cope with the rising cost of living. They will invent excuses to turn to crime. And the courts and prisons will be busy. More pains will be splashed on the victims and families of those at the receiving end of crime.
-Agbolade Owolabi for encomium.ng