Between consumer and petroleum pump price

By Godwin Anyebe

Consumer spending is one of the main engines of economic growth, and its trajectory in the months ahead will be an important indicator of Nigeria’s economic health. If the current trend continues, average daily spending could break through the benchmark on a routine basis, and thus denote a return to levels that characterized high spending far beyond consumer earning.

Growth in spending is a constant, especially in Nigeria with its highly ostentatious lifestyle. Other attitudinal data show that consumers are still more likely to spend more, while many continue to claim that spending less is the “new normal” in their lives, consequent upon evident meager resources. Additionally, Gallup’s measure of job creation slipped slightly at the end of last year, suggesting some caution in concluding that the economy is on a straight linear upward trajectory.

It’s worthy of note that, to consumers, generally, the indications from the prevalent economic environment, and especially with the ramblings about petroleum supply and retail-end pump price uncertainty, portends hopelessness; an experience that indicates disregard from among those trusted for public welfare-focused institutional system management. The panic level among consumers has been aggressively heightened to a dangerous level.

During the military era, petroleum pump price fluctuation was the norm, but that changed appreciatively when the constitutional government replaced military governance. That change in political leadership brought hope of a better consumer experience, based on petroleum products supply, distribution and pricing with all its overriding influence on consumption patterns in general.

Sadly, the experience of the recent past is tampering with that level of ‘comfort’ delicately; seemingly, our politico-economic system seems to disallow regulation, far from the grand rule of constitutionalism; there is no other logical way to explain the system disruption or better still, abuse, targeted at dehumanisation its people.

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In an attempt to bring stability to the sector, the DPR team monitored petrol stations as they dispensed products at official pump-price to the delight of consumers in Southeast and its environs. However, there were reports of sealed stations around the same axis, on account of pump-price manipulation.

Despite this entire attempt, reports are that some petrol stations in the country are still tempted to tamper with the statutory instruction of regulated pump price per litre; a situation that has made life unbearable for consumers. Petty traders on their part, have also hiked prices on account of a hike in petroleum pump prices, further compounding consumers’ woes. It is all a vicious circle playing out the multiplier concept.

Analysts are of the view that, now that this is happening and consumers are at the receiving end, regulatory agencies must be challenged in their role as watchdogs. They must reflect on their effectiveness, and position to help this country grow, by doing the bits and pieces they can put together individually and collectively.

In all of these, the consumers remain the king. Commerce or market is dependent upon consumer well-being; experts have always noted the fact that all humans are consumers, and that that which comes around, goes around as a rule. Whereas it is logically explainable that the retail trader will depend on the excuse of petroleum pump price increase to hike retail prices, it does not protect him/her from the consequence of that action.