Petrol Hits N1,400/Litre: NLC, OPS Demand Urgent Government Action Amid Fuel Crisis

The Organised Private Sector (OPS) and the Nigeria Labour Congress (NLC) have urged the Federal Government to act immediately as petrol prices soar toward N1,400 per litre in several parts of Nigeria. The spike, caused by successive price hikes from the Dangote Petroleum Refinery, has raised alarm over potential inflation, job losses, and business closures. This latest increase marks the refinery’s fifth adjustment in March, with prices climbing from N1,240 to nearly N1,400 depending on the region.

Reports indicate that fuel prices are highest in northern Nigeria, while Lagos and Ogun states still experience rates around N1,340 per litre. Analysts attribute the surge to geopolitical tensions in the Middle East, particularly the ongoing US-Israel-Iran conflict, which has driven global oil prices higher. These external pressures, combined with Nigeria’s deregulated downstream petroleum sector, have intensified the cost-of-living crisis for ordinary Nigerians.

From an average of N839 per litre before February 28, petrol has risen by roughly N500 in less than a month. Stakeholders speaking to The PUNCH stressed the need for immediate relief measures such as tax incentives for refiners, naira-based crude supply to domestic refineries, temporary subsidies, and broader long-term energy sector reforms. Regulators and marketers, however, maintain that price caps are unfeasible under the country’s deregulated system.

The NLC has strongly criticized the monopolistic nature of the petroleum sector, likening it to the cement industry where local prices are higher than in neighboring countries like Ghana and Rwanda. According to the NLC, dominant players dictate pricing, leaving ordinary Nigerians to bear the brunt of high costs. The union also called for efficient engagement of public refinery workers to boost domestic output and reduce reliance on monopolized markets.

NLC leaders highlighted the absence of strategic petroleum reserves as a key vulnerability. Benson Upah, Acting Secretary-General of the NLC, suggested that temporary subsidies targeted at the source, along with crude sales in naira to domestic refineries, could help stabilize prices without distorting the market. While acknowledging the global oil market shocks, the labour group emphasized the urgent need for structural reforms to safeguard Nigerian consumers and the economy.

source: punch