•As bakers consider increasing bread prices
By Chinyere Anyanwu
Two substantial increases in fuel price between May and July, which raised price of petrol rising from N195 to N617 per litre within weeks, have left a sour taste in the mouth of producers, sellers and consumers of goods and foodstuff across the country.
The hike in transportation and production of food arising from the fuel price increase has had a ripple effect on the food chain resulting in consumers paying almost double for food items despite dwindling resources and waning purchasing power.
This, stakeholders say, will further worsen the already prevailing hunger and malnutrition facing many households in the country.
Daily Sun checks on prices of food items at select markets across Lagos reveal a sharp increase in prices of some major staples.
A 4 litre paint bucket of white garri which sold for between N900 and N1000 before the late May fuel price increase now sells for N1500. A 50kg bag of local rice which sold for around N33,000 prior to the fuel price hike is now selling for N38,000 while the foreign brand which sold for N35,000 before the fuel price increase is currently selling for N39,000. In the same vein, a 5 litre keg of vegetable oil that sold for N4,300 before the fuel price hike can be bought for N5000 while the same size of red oil is selling for N4,500 as against its previous price of N3,800.
A 50kg bag of flour that was going for between N35,000 and N37,000 before the May fuel price increase is now selling for between N39,000 and N40,000 while a 50kg bag of sugar which sold for N36,000 in early May is currently selling for N40,000. An average tuber of yam that sold for about N1,700 before the fuel price hike now sells for between N2,700 and N3000. A 50kg bag of Oloyin (honey) beans which went for N30,000 in early May is now sold for N33,000.
Reacting on the implication of the fuel price increase for food producers and consumers, Mr. Alexander Abia, the CEO of a Lagos-based bakery, Richo Bakery, said the impact is far reaching and will most likely escalate.
Abia, who noted that the situation has brought huge challenges to business operations in his section of the food chain, explained that going by the way things stand presently, consumers should not be surprised to witness a major increase in the price of bread.
He said, “as I speak, two bakeries I know have shut down and that has brought about job losses. With what is on ground now, the price of bread will most likely go up by the end of this month because the prices of almost all the baking ingredients have gone up by over 30 per cent. Alternatively, some bakers may resort to reducing the quality and sizes of their loaves and that is not fair because it is shortchanging the customer.
According to him, “anybody who wants to stay in this business has to adjust the price of the product upward.”
Abia further said, “though I’m not in the bakers’ association but I know those who belong there and, according to them, discussions on increasing the price of bread officially by month end are ongoing.”