The presidential candidate of the Social Democratic Party (SDP), Prince Adewole Adebayo, has warned that the price of Premium Motor Spirit (PMS), commonly known as petrol, could rise to ₦5,000 per litre if President Bola Tinubu secures a second term in office.
Adebayo issued the warning in a press release signed on Wednesday by his presidential campaign’s Chief Communications Adviser, Comrade Mark Adebayo.
He attributed the projected increase to the Federal Government’s economic policies, particularly the full deregulation of the petroleum downstream sector and the floating of the naira.
According to him, the policies have placed the Nigerian economy on a hyper-inflationary path and, without a major change in direction, could result in further increases in fuel prices.
Adebayo said his projection was based largely on the relationship between the exchange rate and the cost of imported petrol.
He noted that petrol imported into Nigeria is priced in United States dollars, arguing that continued depreciation of the naira would raise the cost of fuel imports.
“If the exchange rate hits ₦3,500 to $1 in the coming years, the landing cost of fuel alone will exceed ₦4,000,” he said.
He added: “You cannot have economy illiterates running your country and expect the people not to suffer. They don’t understand how to run a developing economy in a complex modern global dynamic. The realities are faster than their capabilities can operationalise.”
On the removal of fuel subsidies, Adebayo said the policy had eliminated the government’s ability to shield consumers from fluctuations in international crude oil prices.
“The current policy completely removes the government’s ability to cushion international oil price shocks. If global crude prices spike due to geopolitical tensions, Nigerian consumers will bear 100% of the burden at the pump which automatically triggers a compounded inflation spiral,” he said.
He continued: “High fuel costs drive up transport inflation. Transport inflation drives up food inflation. This vicious cycle reduces the purchasing power of the Naira, forcing marketers to raise prices just to break even against operational costs.
“High interest rates from the Central Bank mean oil marketers are borrowing at exorbitant rates to fund imports. These financing fees, alongside decaying port and distribution infrastructure, add hundreds of Naira in hidden costs to every liter of fuel.”
Adebayo said the economic hardship being experienced by Nigerians is the predictable consequence of adopting what he described as “foreign IMF-style models” instead of policies focused on citizens.
“We cannot run an economy purely on taxes, subsidy removal, and currency devaluation without producing anything internally,” he stated.
He added: “A ₦5,000 fuel price is not a myth; it is basic mathematics based on the direction the Tinubu administration is walking. If Nigerians do not demand a change in economic philosophy, the pump price will catch up to this reality sooner than expected.”
The SDP presidential candidate also outlined some of the economic measures he said his administration would implement if elected.
“When elected into office next year, my administration will immediately revive local refining capacity through transparent public-private models, and reintroduce targeted cushions to protect regular Nigerians from economic collapse,” he said.
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