Prof. Uche Uwaleke, a Professor of Finance and Capital Market at Nasarawa State University, has said that the new fuel pump price will heighten inflationary pressure in the country.
He said, “This is clearly a downside risk to inflation.
“In the coming months, I expect inflationary pressure to heighten as crude oil price recovery in the international market necessitates a hike in domestic pump price of imported fuel.
“This situation will be compounded by naira devaluation”
Uwaleke, who is also a former Imo State Commissioner for Finance said that to save the situation, the surrogate would have been petrol subsidy.
According to him, government cannot afford it now as it is not provided for in the 2020 budget.
“Again, expecting a government already saddled with huge debt to borrow to subsidise price of petrol does not make economic sense.
“With all the economic headwinds, there is no question about a spike in cost of living in the coming months,” He noted that the only solution was for government to ensure the passage of the Petroleum Industry Bill (PIB).
“The solution remains passing the Petroleum Industry Bill into law to pave way for investors in the oil refining sector which will put a stop to import of petroleum products well before Dangote refinery takes off to fill the gap,” he said.