OPS AND NLC CALL FOR ACTION AS PETROL PRICE REACHES N1,400 PER LITRE
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By: Tajudeen Aminat
The organised private sector and the nigeria labour congress on monday urged the government to take immediate action as petrol prices climbed close to n1,400 per litre in parts of the country, raising concerns about rising inflation, job losses, and business closures.
this comes after multiple price increases by the dangote petroleum refinery, which recently raised its ex-depot price to about n1,275 per litre, marking its fifth increase in march. the hikes have heightened concerns about pricing in nigeria’s deregulated downstream petroleum sector.
following the latest increase over the weekend, petrol prices rose from n1,240 to nearly n1,400 depending on the location. reports indicate that prices are higher in the north, while consumers in lagos and ogun still purchase at around n1,340 per litre.
The price surge has been linked to the us-israel-iran conflict in the middle east. as global oil prices rise, the dangote refinery has also adjusted fuel prices upward in nigeria, further driving up the cost of living.
from an average of n839 before february 28, the price of petrol has increased by about n500 per litre. analysts warn that if the crisis persists and the strait of hormuz remains closed, prices could rise to between n1,500 and n2,000.
speaking with the punch, stakeholders in separate interviews called on the federal government to implement immediate relief measures, including tax incentives for refiners, the sale of crude in naira, and temporary subsidies, while also pushing forward long-term reforms in the energy sector.
however, regulators and marketers maintain that the federal government cannot fix petrol prices as done in china, noting that nigeria’s downstream petroleum sector is fully deregulated.
NLC EXPRESSES CONCERN
The nigeria labour congress said nigerians are bearing the burden of what it described as monopoly in the downstream petroleum sector. the nlc assistant secretary-general, onyeka chris, told the punch that poor workers and the general public are “suffering the effects of allowing a monopolist to dominate the system.”
the union drew comparisons with the cement industry, questioning why locally produced cement appears to be more expensive in nigeria than in neighboring countries such as ghana or rwanda.
according to the nlc, the downstream petroleum market functions as a “seller’s market,” where dominant players dictate prices. “a monopoly controls the market. the seller sets and fixes the price as he pleases,” the labour group said.
it further stated that available data shows nigeria has one of the highest income credits for refined petroleum products, yet ordinary citizens do not benefit from it. the union also criticized the government, saying, “the government supports them, maintains them, compensates them, and enables their monopolistic position.”
the group added that public refineries could operate effectively if properly managed and if the workforce is fully engaged. it warned that nigerians must organize to challenge economic concentration.
“until we come together and assert our collective will, there will be no fairness. we will not benefit from this country. unions, workers, students, artisans, and all citizens must unite to confront monopolistic control over essential goods,” the nlc official stated.
the congress further stated that the alleged monopolistic control in the petroleum sector highlights the need for urgent government intervention to ensure fair fuel pricing and protect consumers.
also, the acting secretary-general of the nlc, Benson Upah, told one of our correspondents that geopolitical tensions in the oil-rich middle east have historically caused disruptions in the global oil market, but nigeria’s exposure has been worsened by weak domestic safeguards.
Upah noted that countries with stronger economic systems usually maintain strategic petroleum reserves to cushion such shocks. “anticipating that conflicts can arise and escalate quickly, responsible governments build strategic reserves through large storage facilities,” he said.
He added, however, that such reserves are only temporary measures meant to ease shocks and give governments time to respond effectively.
“strategic reserves are not permanent solutions. they are designed to reduce sudden shocks and give governments time to respond properly to market disruptions,” he said.
the labour leader also questioned nigeria’s level of preparedness, stating that the immediate impact of the crisis suggests either a lack of reserves or failure to release them. “the impact on us was immediate, indicating there were no reserves, and if there were any, they were not deployed,” Upah added.
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