Can you explain the frequent protests, against fuel price hikes in Nigeria and how steeply have fuel prices risen over the last two decades?
Nigerians see cheap fuel as a legitimate reward for Providence putting so much oil-subsidy removal, in particular since1986, have pitched the impoverished populace against the authorities each time a new fuel price is announced. The anger stems from the frequency of the increases, the pass-through of local currency depreciation against hard currencies and the pervasive nature of energy costs in increasing economic hardships amid growing poverty. The chart below shows how steeply petrol (gasoline) pump-prices have risen over the last two decades. In 2004, the US dollar in Nigeria is 140 times its value 19 years ago. Fuel prices have risen faster: 268 times over the same period. Petrol pump price in Nigeria is 68 times higher than it was just 13 years ago in 1991. Until the exchange rate stabilises, which is dependent on the overall management of the oil-dependent economy, petrol prices are likely to rise. The ongoing privatisation is unlikely to reverse the trend.
Related Questions
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