The Nigeria Labour Congress (NLC) has called on the Federal Government to urgently introduce measures to cushion the impact of rising petrol prices, including the payment of reasonable wage awards to workers and the sale of crude oil to local refineries in naira.
In a statement signed by its President, Joe Ajaero, on Wednesday, the labour centre said petrol now sells for about ₦1,430 per litre in major cities, with prices reportedly higher in less accessible locations.
The NLC warned that the latest increase would worsen the economic hardship facing Nigerians, noting that higher transport costs typically translate into increased prices of food, rent, school fees and other essential goods and services.
The statement, titled “Save the Situation Now,” said the latest surge came at a time when government pressure on oil marketers to reduce pump prices following a decline in international crude prices was beginning to yield results.
According to the NLC, the latest increase has been linked to the resurgence of conflict in the Gulf. However, it argued that Nigeria’s status as an oil-producing country should provide some protection against external shocks in the international oil market.
“As a nation, and as a people endowed with enormous fossil resources, we are deserving of a certain level of protection or buffer against the gales from the Gulf, and indeed, other gales,” the union said.
The NLC urged the Federal Government to immediately implement measures to protect households and businesses from the impact of higher fuel prices.
It specifically demanded reasonable wage awards for workers, adequate crude oil supplies to local refineries through naira-denominated sales, and an expansion of the country’s petroleum storage capacity to strengthen energy security and improve preparedness for emergencies.
The labour union said the measures could not only ease the burden on Nigerians but also create jobs, generate economic value and contribute to addressing emerging security challenges.
It further argued that government intervention, including subsidies, should not be ruled out during an emergency.
“There is nothing wrong with government subsidising the needs of citizens, especially in emergency situations like this,” Ajaero said.
He added that oil-producing countries were adopting various forms of intervention and palliatives to shield their citizens from the effects of the current global energy crisis.
NLC Raises Crude Supply Concerns
The NLC also said the Federal Government had benefited from higher international crude prices, claiming that crude oil was currently selling about $35 to $40 per barrel above the benchmark used in the national budget.
The union described the additional revenue as a potential windfall that could provide fiscal space for measures to protect citizens from rising living costs.
It also expressed concern over reports that some local refineries were importing crude oil, arguing that such a development undermines efforts to build domestic refining capacity.
“On a long-term basis, we are equally concerned that local refineries are importing crude. This is unreasonable and unacceptable and defeats the logic and purpose of local capacity,” the statement said.
The latest petrol price increase comes amid Nigeria’s transition to a deregulated downstream petroleum sector following the removal of the petrol subsidy in May 2023.
Under the current system, domestic petrol prices are more directly affected by international crude prices, foreign exchange costs, logistics and other market factors.
The Federal Government and oil-sector regulators have since introduced measures aimed at expanding domestic refining capacity and reducing dependence on imported petroleum products.
The commissioning and ramp-up of large-scale private refining capacity, alongside efforts to rehabilitate government-owned refineries, have formed part of the government’s strategy to improve domestic fuel supply and reduce exposure to international market volatility.
However, fluctuations in crude prices, exchange rates and supply-chain costs continue to influence petrol prices and transportation expenses, with consequences for household purchasing power and inflation.
The NLC said the Federal Government needed to act quickly rather than allow the burden of rising fuel costs to fall entirely on workers and other citizens.
Ajaero said the government, which he noted was seeking re-election in the coming months, “cannot afford to stand and watch marketers inflict suffering on the citizenry in the name of deregulation.”
“Labour has an obligation to speak out or act accordingly,” he added.
