As the escalating tensions between the United States of America and Iran in the Middle-East is still on, Nigeria’s local economy is swallowing the bitter pills with the price of gasoline in Kogi State surging from N839 to N1330 per litre.
BusinessDay findings indicate that the sharp increase is about 58.5 percent, which has already triggered a rise in transportation fares across the state capital, leading to commuters and transport operators grappling with the sudden economic pressure.
Transport operators who spoke with our correspondent said that the increase in fuel price had forced them to adjust fares in order to remain in business, as they lamented that the development has placed additional burden on residents who depend largely on commercial transport for their daily activities.
Tricycle popularly known as KeKe Napep operators are not left behind as they have hiked the fare, a trip from Zone 8 to International all Market, which preciously cost N400, is now N500 or N600 depending on the passengers bargaining power, from Barrack to Ganaja Junction, is now N300 against N200.
From Gadumo to Post Office, which previously cost about N200, now attracts N300, from Post Office to Felele have jumped from N300 to about N500, a development commuters described as alarming.
Women that are in the business of grinding maize, egusi, cassava and all the rest are not equally left behind as the price of grinding mudus of maize has also increased from N300 to N500 per mudu all pointing fingers to the increase of gasoline.
Drivers and passengers alike expressed concern that if the situation persists, the rising cost of transportation could further worsen the cost of living in the state capital, as traders may also be compelled to increase the prices of goods and services.
Experts explain that any disruption to crude oil supply routes in the region often triggers volatility in global oil prices, which eventually affects fuel prices in import -dependent markets such as Nigeria.
Analysts equally say the situation could ease if diplomatic efforts by the international community succeed in de -escalating tensions between the two countries, as they note that sustained dialogue and negotiations among major global powers could help stabilize the Middle East and restore confidence in the global oil market.
Businesses in Lokoja and other parts of Nigeria may continue to feel the heat of the geopolitical crisis that is unfolding from the volatility in global oil prices, unless solutions are achieved.
