Economist Warns Of Inflation Surge Following Petrol Price Hike

Economist Bismarck Rewane has warned that the recent increase in petrol prices in Nigeria could lead to a rise in the country’s inflation rate, which currently stands at 23.18%.

While the full effects have yet to materialize, Rewane expressed concern about potential economic consequences in the near future.

Speaking on Channels Television’s Business Morning show on Tuesday, Rewane noted, “There might be an increase in the rate of inflation because of the increase in the price of petrol, but we haven’t seen the corresponding increase in the prices of transport fares so far.”

However, he highlighted that food commodity prices have already started to rise, exacerbating the situation, especially with the onset of the planting season. This, according to Rewane, is likely to put additional pressure on consumers.

The Managing Director of Financial Derivatives Company Limited also pointed to broader global economic uncertainties, particularly the trade tensions between the U.S. and other countries.

He referenced the imposition of tariffs on imported goods by former U.S. President Donald Trump’s administration, which he believes has disrupted global markets.

“The United States has disrupted things with its policy initiatives. The United States, I think, will reverse some of those decisions when they begin to impact everybody,” Rewane said.

He added that the political climate in the U.S., with mid-term elections approaching in 2026, could lead to a reevaluation of these policies.

Despite the growing concerns, Rewane urged Nigerians not to panic, stating that the volatility in the markets would likely be temporary.

“We are in a political system, and the volatility will be for a short while,” he said, offering a cautious outlook for the future.