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The hidden tax we pay, by Chioma Gabriel
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The hidden tax we pay, by Chioma Gabriel

Vanguard Nigeria 41 minutes 3 mins read
The hidden tax we pay, by Chioma Gabriel

Petrol prices are high and every Nigerian pays. Whether you own a car or not, Nigerians  pay in more ways than one.

Every morning, before many families have eaten breakfast, the rising cost of petrol has already taken a bite out of their income. It is reflected in the transport fare paid by a worker rushing to the office, the price of bread bought by a mother for her children and the extra money a trader spends transporting goods to the market.

For millions of Nigerians, petrol has become more than fuel. It is an invisible tax that follows them from their homes to their workplaces, markets, schools and hospitals.

A  commercial driver  spends a substantial part of his daily earnings buying petrol. When the price rises, he faces an uncomfortable choice: increase fares and risk losing passengers or maintain existing fares and take home less money. Whichever decision he makes, somebody bears the burden.

For passengers already struggling with low incomes, higher transport fares mean less money for food, medication and other necessities. Some workers walk longer distances to save money, while others leave home earlier to avoid paying for multiple journeys.

The impact does not end at the bus stop.

A bag of rice, a basket of tomatoes or a crate of eggs must be transported from farms and distribution centres to markets. When the cost of fuel rises, transporters often pass the additional expense to traders, who eventually transfer it to consumers. Consequently, even households that do not own vehicles feel the pressure of petrol prices.

Small business owners are equally exposed. Tailors, barbers, welders, frozen-food sellers and neighbourhood shopkeepers who depend on petrol-powered generators must spend more to keep their businesses running whenever electricity supply is inadequate.

For these entrepreneurs, higher fuel expenses can mean reduced profits, shorter working hours, increased prices or, in extreme cases, closure. Customers, already financially stretched, may respond by buying less.

The burden is particularly painful for low-income households, which spend a large proportion of their earnings on basic necessities. Unlike wealthier families, they have little room to absorb repeated increases in everyday expenses.

Although petrol is purchased at filling stations, its economic consequences spread far beyond the pump. It raises the cost of moving people, producing goods and providing services. This is why many Nigerians experience petrol price increases as a tax, even though the additional expenses are not collected by the government as a single, direct levy.

Labour unions have called for measures to ease the burden of fuel costs and renewed wage negotiations. Their concerns reflect a wider question: how can workers survive when their earnings struggle to keep pace with the cost of living?

Ultimately, the real measure of petrol prices is not simply what appears on a filling-station display. It is what remains in a family’s pocket after paying for transportation, food, electricity and other essentials.

Until wages, public transport, electricity supply and economic policies offer meaningful relief, Nigerians will continue paying this hidden tax daily, often without seeing a receipt, but always feeling its consequences.

The post The hidden tax we pay, by Chioma Gabriel appeared first on Vanguard News.

This article was sourced from an external publication.

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