Fuel crisis keep food prices high

A week after the festive season, prices of food items in Lagos remain relatively high.

In a market survey conducted by NEXT, traders attributed the high prices of some food items to high transportation costs caused by the lingering fuel shortages.

A cross section of traders who spoke with NEXT urged government to find a lasting solution to the fuel crisis, which has pushed up the pump price of petrol from N65 per litre to between N130 and N150/litre.

Haruna Usman, a trader in grains, said fuel is a major price determiner, as goods sold in the market must be transported to their end users: the consumers.

“Government needs to get more serious about finding solutions to the fuel crisis, as this has a direct effect on every activity in this country and this shouldn’t be so. There ought to be an alternative means of transportation such as the railway, to reduce the effect of the fuel crisis on the masses and the economy,” he said.

Yakubu Abubakar, a tomatoes trader, noted that the prices of tomatoes and pepper should have reduced after the Yuletide season, when new harvests commence, but the cost of transportation has kept their prices high.

Scarcity and high cost of fuel

Trailer drivers who bring in food stuff such as tomatoes, pepper, onions and beans said it is difficult to get fuel and had to increase their charges because of the high price of fuel.

“This means that we too have to increase prices, as we are in business to make profit,” Mr. Abubakar added.

A medium sized basket of tomatoes now sells for N4,000 as against the N5,500 it was sold during the Yuletide period; pepper reduced by N500 from N4,000 a bag to N3,500, while a medium sized basket of onions goes for between N850 and N1000.

However, there is a sharp increase in the price of garri, rising from N4,500 to N6,000 per bag, while the prices of rice, beans, groundnut oil and palm oil remain stable.

Blessing Sule, a rice trader at the Agege Market, observes that even though the festive periods are over, the prices of rice and beans might not fall soon due to the persistent fuel crisis.

“We are not expecting any fall in the prices of rice and beans; because of the high cost of fuel, we spend a lot in transporting our goods from the point of purchase to our warehouses. This cost is built into the prices of the goods, so I do not see us reducing the prices soon.”

Low patronage

With prices remaining high, many traders complained about low patronage, as consumers now only buy for their immediate needs instead of buying in bulk.

Nkiru Chukwu, a teacher, said the harsh economic situation makes it difficult for her to plan her monthly family budget, as the price of goods keeps fluctuating.

“Government needs to intervene in the matter because more people are suffering. Things are getting more expensive in the market, and most people are losing their jobs. How does the government want people to survive? It is high time government at all levels intervene by creating employment for the people and reducing the nation’s dependence on the oil sector,” she concluded.