Harder times loom as fuel crisis lingers

The near-term inflation outlook appears increasingly unpredictable, as the petrol shortage crisis and the rising cost of diesel have added to other challenges driving up prices of essential commodities in the country.
   
Efforts to rein in fuel supply shock have failed, leading to endless queues at many retail outlets in Lagos, Abuja, Port Harcourt and other cities.

The crisis has worsened gridlocks in the metropolis with thousands of commuters stranded at bus stops.

The January Consumer Price Index (CPI) released by the National Bureau of Statistics (NBS), yesterday, points to a slight moderation in the headline inflation, from 15.63 per cent in December to 15.6 per cent.

But there are fears that the direction of the inflationary trend could change significantly this month.

Triggered by the shortage of Premium Motor Spirit (PMS), the cost of transportation, a key driver of inflation, has doubled or tripled in different cities.