NLC Demands Wage Awards, Emergency Palliatives As Petrol Price Hits ₦1,430/Litre
The Nigeria Labour Congress has called on the Federal Government to urgently introduce measures to cushion the impact of the latest increase in the price of petrol, including the payment of reasonable wage awards to workers and the sale of crude oil to local refineries in naira.
The NLC, in a statement signed by its President, Joe Ajaero, on Wednesday, said petrol was now selling for about ₦1,430 per litre in major cities, with prices reportedly higher in locations that are difficult to access.
The labour centre warned that the rising cost of petrol could further worsen the economic hardship facing Nigerians, noting that increases in transportation costs usually have a knock-on effect on the prices of food, rent, school fees and other essential goods and services.
In the statement titled, “Save The Situation Now,” the NLC said the latest increase occurred at a time when government pressure on oil marketers to reduce pump prices in response to lower international crude oil prices was beginning to yield results.
According to the union, the latest surge in petrol prices has been linked to the resurgence of conflict in the Gulf region, but argued that Nigeria, as an oil-producing country, should have mechanisms to shield its citizens from the effects of international oil 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,” the NLC said.
The labour body urged the Federal Government to immediately introduce measures aimed at protecting 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 transactions, as well as the expansion of the country’s petroleum storage capacity.
The NLC said strengthening national petroleum reserves would improve energy security and enable the country to respond more effectively to future emergencies and disruptions in global oil markets.
According to the union, the proposed measures would not only reduce the immediate burden on citizens but could also support job creation, stimulate economic activity and contribute to addressing emerging security challenges.
The labour centre further argued that government intervention, including subsidies, should not be completely 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 several oil-producing countries were introducing various forms of intervention and palliatives to protect their citizens from the impact of the prevailing global energy crisis.
The NLC also said the Federal Government had benefited from the increase in international crude oil prices, claiming that crude oil was currently trading about $35 to $40 per barrel above the benchmark used in the national budget.
It argued that the additional revenue should be treated as a windfall that could provide the government with fiscal space to introduce interventions aimed at protecting citizens from the rising cost of living.
The labour union also expressed concern over reports that some local refineries were importing crude oil, describing the development as inconsistent with the objective of expanding Nigeria’s 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.
The policy has left domestic petrol prices more directly exposed to movements in international crude oil prices, foreign exchange costs, logistics and other market factors.
The Federal Government and oil-sector regulators have subsequently pursued measures aimed at increasing domestic refining capacity and reducing the country’s dependence on imported petroleum products.
The commissioning and ramp-up of large-scale private refining facilities, alongside efforts to rehabilitate government-owned refineries, have formed part of the government’s strategy to improve domestic fuel supply and reduce exposure to fluctuations in the international oil market.
However, changes in crude oil prices, exchange rates and supply-chain costs continue to affect petrol prices and transportation expenses, with consequences for household purchasing power and the broader cost of living.
The NLC urged the Federal Government to act quickly to prevent the latest increase from placing the entire burden on workers and other citizens.
Ajaero said the Federal Government, which he noted was preparing for the coming election cycle, “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.