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Subsidy removal: Food prices soar as labour sets for strike
The prices of major foodstuffs and other essential goods have started rising in response to the hike in the pump price of Premium Motor Spirit, popularly known as petrol, following the announcement by President Bola Tinubu that the era of subsidy on the product is gone.
Tinubu had on Monday during his inaugural speech at the Eagle Square in Abuja said the era of subsidy payment on fuel had ended, adding that with the 2023 budget making no provision for it, further subsidy payment was no longer justifiable.
He added that his administration would instead channel funds into infrastructure and other areas to strengthen the economy.
The presidential pronouncement led to an instant resurgence of fuel queues across the country with Nigerians foraging for the premium product. Though Tinubu’s decision received the backing of the NNPCL and the House of Representatives, it has since been resisted by the NLC and the Trade Union Congress of Nigeria.
According to the organised labour, the President cannot unilaterally take a decision on subsidy removal.
Currently, petrol sells for between N495 and N600 per litre across the nation from N185 to N220 until Monday.
A survey conducted by Sunday PUNCH in various states of the federation on Saturday showed that apart from the increase in transport fares, the prices of foodstuffs, soup ingredients, daily provisions and other essential goods had started rising with expectations of further increment as manufacturers and retailers adjust to the new fuel regime.
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