The seemingly uncontrollable hike in petrol price is now telling on average Nigerian today.
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“This is the harshest we are seeing in this business in 30 years,” said Nnamani Caleb, a bus driver plying Garriki-Agbani route in Enugu State.
Before President Bola Tinubu came to power in 2023 petrol price was below ₦200. It surged to N1,000 in twinkle of eyes, then to ₦1,030, and to ₦1,060. And the end, it seems, isn’t in sight.
Nnamani told me that the petrol price hike and the general uncertainty in the economy is seriously threatening his family’s livelihood.
Nnamani, 51, who said he came into transit business as a teen, disclosed he’s yet to pay his seven children’s school fees.
“Sometimes we come out as early as 5 a.m to queue for turns but wouldn’t load for a trip until about 12 or 1 p.m. Not just that, in average day I collected about ₦25,000 from fares but spend between ₦16,000 to ₦18,000 for fuel.
“This is because people hardly go out these days, and more number of people now resort to trekking to their destinations,” Nnamani said.
Nigerian National Petroleum Company (NNPC) outlets across the nation raised petrol price from ₦998 to ₦1,030 on October 9. On Tuesday, NNPC hiked the price once again to ₦1,060 in some cities like Lagos and Abuja.
But the ugly development isn’t the bane of transporters alone. Factories, hotels, entrepreneurs find it difficult to cope, too.
Small, big business failing in Abuja and rural areas alike
According to business owners, the continuing increase in petrol price is killing businesses.
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Premium Times interview one Thomas Christopher, Abuja-based CEO of Skylight Marketers and Durable Homes.
“The price of fuel can change dramatically,” Mr Thomas said. “Yesterday, it was N1,100, and today, it’s N1,175. This increase is surprising and unsustainable.
His daily expense for fuel alone is over ₦80,000, a four-time increase that is greatly hurting his business.
In Enugu, barbers have hike their fees, charging as high as ₦1,000 for same service they previous did for ₦400.
This is because they relied on fuel to generate power needed for the service.
Effects of petrol price hike on small businesses in rural areas
“I’m stranded; what happens here is that we make money, then take same money and give it to filling stations attendants,” Onyebuchi Eugene, a welder at Akwuke Enugu State, lamented.
According to Eugene, “these days are dry” and he was no more working because when he charge higher for his work, usually the customer just work away.
“He will just collect your number and promise to get back to you,” Eugene continued. “Then he walks away, never to call you or come again.
In fact, all the services which rely of fuel have tripled their fees, while some small business owners in the villages are closing down because of fluctuating petrol price.