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Friday, March 31, 2023

Crude Oil Price: MAN Warns of Hyper Inflation

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As a result of the increase in the prices of petroleum products especially diesel, the Manufacturing Association of Nigeria on Tuesday said that Nigerians should expect higher inflation rates and a surge in the prices of goods and services as the cost of diesel rises.

Speaking on behalf of MAN, the Chairman, Infrastructure Committee, Ibrahim Usman, said the rise in inflation would be driven by higher cost of production for manufacturers who depend largely on diesel for production.

Usman said, “the rise in the price of diesel means higher production cost for manufacturers because most of us rely on diesel to produce. So when the cost of production is high, then manufactured products will be sold at a higher price, this is to enable the manufacturer to make a profit after-sale and stay afloat.

“So basically it will increase the inflation in the country which is already high, further compounding the problems and plight of Nigerians.”

He said that the government can prevent the expected consequences by providing adequate power supply across the country and offering discounts on electricity tariffs to manufacturers.

“To avoid these things from happening, the government should make sure that it creates a situation whereby the cost of electricity is reduced for manufacturers and that power supply is accessible to producers,” Usman said.

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