The Nigerian Labour Congress (NLC) has raised alarm over the escalating cost of petrol in the country, accusing key players in the petroleum sector of artificially inflating fuel prices. In a communique issued on Sunday, NLC President Joe Ajero alleged that the current petrol pump price far exceeds its true market value, with what he described as “fat cats” in the industry manipulating prices for excessive profit.
The NLC’s statement comes amid a backdrop of rising fuel costs following the removal of fuel subsidies, which has triggered a cascade of price hikes across the country. The union is calling for urgent measures to curb the price increases, particularly highlighting ongoing disputes between Dangote Refinery and local fuel marketers, which it believes may be at the root of the price distortions.
NLC’s Allegations and Call for Action
Ajero accused petroleum industry stakeholders of creating a “gang-up” against Nigerians, pointing to the significant gap between the real market price of petrol and the pump prices that consumers are being charged. According to the NLC, there is evidence that costs are being “padded,” with abnormal profit margins being added to the price at the expense of ordinary Nigerians.
“The current price of the product is significantly higher than the real market price. Padding of costs and abnormal margins seems to be the order of the day,” the NLC stated in the communique.
The labour union also suggested that the delays in bringing the country’s refineries back online could be part of the strategy to maintain this high pricing structure. Specifically, the NLC is calling for the activation of the Port Harcourt, Warri, and Kaduna refineries as a solution to break the monopolistic control currently held by a few major players in the oil and gas industry.
Rising Petrol Prices Amid Subsidy Removal
Fuel prices have been climbing steadily since the government’s subsidy removal, which has left the market exposed to global oil price fluctuations and currency volatility. The Nigerian National Petroleum Corporation (NNPC) Limited has continued to raise petrol prices, citing market forces such as crude oil prices, exchange rates, and logistics costs.
However, some local marketers contend that petrol importation could help reduce fuel costs, suggesting that competition could drive prices down. In contrast, the Dangote Refinery, one of the largest private oil refineries in the country, has defended its price structure, asserting that its prices—ranging from N970 to N990 per litre—are aligned with market realities. Dangote Refinery maintains that any product sold at lower prices is likely to be of inferior quality or possibly involve illegal activities such as crude oil theft.
The dispute between Dangote Refinery and the marketers has now escalated into a legal battle, with both sides awaiting a court ruling on the matter.
Calls for Refineries to Resume Production
The NLC’s statement stressed that the government should prioritize the swift reopening of domestic refineries to reduce reliance on importation and help stabilize petrol prices. The union is also urging for transparent and fair pricing mechanisms, aimed at ensuring that Nigerians are not exploited by industry cartels.
“We demand appropriate pricing of petrol and call for the public domestic refineries in Port Harcourt, Warri, and Kaduna to quickly come back on stream to break up the monopolistic stranglehold the big players have on the industry,” Ajero stated.
The Bigger Picture: Impact of Fuel Price Hikes
The ongoing fuel price hikes have already had a significant impact on Nigeria’s economy, with inflationary pressures mounting as the cost of transportation and goods rises. The NLC has previously warned that the increasing fuel prices could lead to widespread economic hardship, particularly for low-income Nigerians.
As the dispute between Dangote Refinery and marketers continues to unfold, the NLC’s call for government intervention and the activation of domestic refineries underscores the urgency for lasting solutions to Nigeria’s fuel pricing challenges.
What to Expect Going Forward
As the legal dispute plays out, Nigerians are likely to experience continued volatility in fuel prices, especially if the issues between the refinery and marketers are not resolved promptly. The NLC’s demands for refinery activation and price transparency signal that the union is prepared to escalate its actions should the situation not improve, potentially leading to further public protests or industrial action.
With the federal government under increasing pressure to find a sustainable solution to the nation’s petrol pricing crisis, the coming months will be critical in determining how Nigeria navigates these complex challenges in the oil sector.
