The Nigeria Labour Congress has urged the Federal Government to take immediate steps to reduce the effect of rising petrol prices on Nigerians, including the introduction of reasonable wage awards for workers and the sale of crude oil to local refineries in naira.
The labour centre made the demand in a statement signed by its President, Joe Ajaero, on Wednesday, warning that petrol prices had climbed to about N1,430 per litre in major cities and were reportedly higher in areas that are more difficult to access.
The NLC said the latest increase could deepen the economic difficulties already confronting households and businesses, pointing out that higher transportation costs often lead to increases in the prices of food, rent, school fees and other essential goods and services.
In the statement titled “Save the Situation Now,” the union said the latest price hike came just as pressure on oil marketers to reduce pump prices following a decline in international crude prices was beginning to yield results.
The labour body linked the fresh surge to the renewed conflict in the Gulf but argued that Nigeria’s position as an oil-producing country should provide some level of protection against shocks in the international oil market.
It said, “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 NLC called for urgent government intervention to protect households and businesses from the consequences of the higher fuel prices.
Among its demands, the union asked the government to provide reasonable wage awards to workers, ensure adequate crude oil supplies to domestic refineries through naira-denominated sales, and expand the country’s petroleum storage capacity.
According to the NLC, strengthening storage infrastructure would improve energy security and ensure the country was better prepared to respond to future emergencies.
The union maintained that such measures could go beyond providing immediate relief, arguing that they could support job creation, generate economic value and contribute to addressing emerging security concerns.
It also said government intervention, including subsidies, should remain an option during emergencies.
READ ALSO:
- FG Assures No School Fee Increase Under King’s College Management Deal
- Power Minister: Nigerians Asked Me To ‘Slow Down’ As Freezers Now Work Nonstop
- NLC Demands Wage Awards, Naira Crude Sales As Petrol Price Hits N1,430
- Otedola Crash Worsens Lagos-Ibadan Expressway Traffic Congestion
- Ogun 2027: Yayi, Hunye Clash Over Claims Of Ekiti Ancestry
“There is nothing wrong with government subsidising the needs of citizens, especially in emergency situations like this,” Ajaero said, adding that oil-producing countries were implementing various interventions and palliatives to protect their citizens from the impact of the ongoing global energy crisis.
The NLC further argued that the Federal Government was receiving additional revenue from higher international crude prices, claiming that crude oil was currently trading about $35 to $40 above the benchmark used in the national budget.
It described the additional earnings as a windfall that could create room for fiscal interventions to protect Nigerians from the rising cost of living.
The labour union also expressed concern over reports that some domestic refineries were importing crude oil, describing the development as inconsistent with the objective of expanding Nigeria’s local 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 against the backdrop of Nigeria’s shift towards a deregulated downstream petroleum sector following the removal of petrol subsidy in May 2023.
Since then, domestic fuel prices have been more directly influenced by factors including international crude prices, foreign exchange costs, logistics and other market conditions.
The Federal Government and oil-sector regulators have introduced measures aimed at expanding domestic refining and reducing dependence on imported petroleum products.
Large-scale private refining projects and efforts to rehabilise government-owned refineries have also formed part of the government’s strategy to strengthen domestic fuel supply and reduce exposure to international market fluctuations.
Despite these efforts, changes in crude prices, exchange rates and supply-chain expenses continue to affect petrol prices and transportation costs, with consequences for household purchasing power and inflation.
The NLC said the government needed to respond quickly instead of allowing workers and other Nigerians to bear the full weight of the latest increase.
Ajaero said the Federal 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.