The Nigeria Labour Congress (NLC) has urged the Federal Government to introduce urgent measures to cushion Nigerians from the impact of rising petrol prices, including wage awards for workers and the sale of crude oil to local refineries in naira.
In a statement signed by NLC President Joe Ajaero on Wednesday, the labour centre said petrol was selling for about ₦1,430 per litre in major cities, with prices reportedly higher in less accessible areas.
NLC calls for urgent intervention
The NLC warned that rising petrol prices would increase transportation costs and place further pressure on household incomes, with knock-on effects on food, rent, school fees and other essential goods and services.
The statement, titled “Save the Situation Now,” said the latest price increase came as efforts to push marketers to reduce pump prices in response to lower international crude prices were beginning to show results.
According to the union, the resurgence of conflict in the Gulf has contributed to the latest pressure on fuel prices. It argued, however, that Nigeria’s status as an oil-producing country should provide some protection against international market shocks.
“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.”
Wage awards, naira crude sales demanded
The labour centre called for reasonable wage awards for workers, sufficient crude oil sales in naira to local refineries and an expansion of Nigeria’s petroleum storage capacity.
It said the measures could help shield households and businesses from rising fuel costs while also supporting job creation, economic activity and energy security.
The NLC also said government subsidies should not be ruled out during emergencies.
“There is nothing wrong with government subsidising the needs of citizens, especially in emergency situations like this,” Ajaero said.
The union said oil-producing countries were also introducing various interventions and palliatives to protect citizens from the effects of the global energy crisis.
NLC points to higher crude revenue
The NLC further claimed that international crude oil was selling about $35 to $40 per barrel above the benchmark used in Nigeria’s national budget.
It argued that the additional revenue should be treated as a windfall that could provide fiscal space for measures to ease the rising cost of living.
The union also questioned reports that some local refineries were importing crude, arguing that such a development undermines the objective of expanding 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.”
Petrol prices remain tied to market pressures
The latest increase comes within Nigeria’s deregulated downstream petroleum market, following the removal of the petrol subsidy in May 2023.
Under the deregulated system, domestic petrol prices are more directly affected by crude oil prices, foreign exchange costs, logistics and other market factors.
The Federal Government has also pursued increased domestic refining capacity as part of efforts to reduce dependence on imported petroleum products and limit exposure to international market shocks.
The NLC said the government needed to act quickly to prevent workers and other Nigerians from bearing the full impact of higher petrol prices.
Ajaero said the Federal Government “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.
