Inflation in Nigeria rises yearly and the last year is not an exception.
The inflation rate rose year on year from 11.4% to 11.98% at the close of 2019.
Similarly, food inflation is also on the rise as the rate rose by 14.67% in December 2019 compared to 14.48% in the previous month. Food inflation is one of index component to measure inflation in the country and the rise can be caused by increase in prices of staple foods and commodities.
Also, core inflation which is an index on things excluding farm produce also rose by 0.34%.
Government Plans Petrol Alternative, to crash price
The Federal Government of Nigeria is planning crashing the price of petrol by providing Compressed Natural Gas (CNG) as an alternative source of fuel for vehicles.
CNG is a fuel that can conveniently be used in placed of Petrol, otherwise called Petrol Motor Spirit (PMS). It can also be a substitute for diesel or LPG.
The Minister of State for Petroleum Resources, Timipre Silva, mentioned that the Nigerian Oil and gas sector was retrogressing especially when compared to other nations.
He further highlighted that the dependence on oil in the country has caused a drain on the Federal Government coffers as a result of continued subsidy hence the need for an alternative.
Commenting on the intent of the government, Timipre said due to the abundance of gas in the country, a shift to the use of CNG wouldn’t be hard to do.
He also said that CNG is N95 to N97 per litre compared to PMS which is N145.