Labour Raises Alarm Over Fuel Price Hike, Fears Food Crisis
• Price Increase Linked to Rising Crude Costs – Dangote
The Nigeria Labour Congress (NLC) has strongly criticized the recent surge in petrol pump prices, labeling it as an act of insensitivity towards the general public.
Senior NLC representatives voiced their concerns in separate interviews on Sunday, while oil marketers distanced themselves from responsibility for the price hike.
Similarly, Dangote Petroleum Refinery clarified that the price increase was not initiated by its $20 billion Lekki-based plant but was a result of rising crude oil costs, a key factor in fuel production.
On Friday, petrol pump prices soared to between N1,050 and N1,150 per litre following price adjustments by Dangote Refinery and other depot operators.
Industry insiders have warned that fuel prices may continue to rise due to the global surge in crude oil prices.
Labour Demands Transparency in Fuel Pricing
Reacting to the situation, Prof. Theophilus Ndubuaku, Deputy President of the NLC Political Commission, criticized the lack of stakeholder engagement before implementing price changes.
“In a well-structured economy, worker representatives, the private sector, and students would have been consulted before such a decision was made,” Ndubuaku stated.
He warned that the price hike would have widespread economic repercussions, including higher food prices and inflation.
“When discussing subsidies, we must recognize that they exist globally. Many products from China, for example, are heavily subsidized. Yet, here in Nigeria, the government refuses to subsidize fuel or provide alternatives like CNG buses,” he added.
Ndubuaku also called for a more inclusive approach, citing former President Olusegun Obasanjo’s administration, which held regular stakeholder meetings to discuss major economic policies affecting workers.
“You cannot keep altering fuel prices without engaging the public. This exclusionary approach is causing widespread frustration,” he said.
Labour Confronts Oil Marketers
Sessi Funmi, Lagos State Chairperson of the NLC, accused oil marketers of contributing to Nigeria’s economic hardship by manipulating fuel prices.
“These marketers are working against the masses, exploiting Nigerians with unjustified price increases,” she told The PUNCH on Sunday.
She claimed that some marketers were intentionally frustrating government efforts to regulate fuel prices and revive Nigeria’s refineries.
“The Tinubu administration has reactivated the Port Harcourt and Warri refineries, which should lead to lower fuel costs. However, marketers are resisting this change to maintain their monopolistic control,” she stated.
Funmi urged the government to bypass middlemen and adopt Dangote Refinery’s direct supply model to ensure fair pricing.
“Nigerians must not continue to suffer due to the greed of a few individuals,” she concluded.
Dangote Refinery Denies Responsibility for Price Surge
Dangote Petroleum Refinery has set its petrol price at N970 per litre nationwide in collaboration with its partners MRS, Ardova, and Heyden.
A statement by Dangote Group’s spokesperson, Anthony Chiejina, attributed the price adjustment to the surge in global crude oil prices.
“At Dangote Refinery, we are committed to providing quality fuel at competitive prices. Although we have adjusted our ex-depot price from N899.50 to N950 per litre, this increase is significantly lower than the 15% rise in global crude oil prices,” Chiejina explained.
He added that the refinery absorbed part of the increased costs to maintain stable retail prices.
“If we passed on the full impact of rising crude oil costs, petrol prices could have reached N1,150 to N1,200 per litre in some locations,” he noted.
To enhance transparency, Dangote Refinery announced plans to publish its ex-depot price, ex-vessel price, and pump price weekly to prevent consumer exploitation.
Chiejina also praised President Bola Tinubu’s Naira-for-Crude Initiative, which he described as a game-changer for stabilizing Nigeria’s fuel supply.
Marketers Justify Price Volatility
Petroleum product marketers have rejected claims that they are responsible for the unstable fuel prices, emphasizing that the market is now fully deregulated.
According to industry stakeholders, international crude oil prices and exchange rate fluctuations remain the primary determinants of petrol costs.
As of Sunday, crude oil prices stood at:
✅ Brent Crude – $80.78
✅ West Texas Intermediate (WTI) – $77.88
✅ Morban Crude – $83.65
✅ Nigeria’s Brass River Crude – $83.69
✅ Qua Iboe Crude – $83.59
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) urged Nigerians not to blame filling stations for fuel price fluctuations.
Dr. Billy Gillis-Harry, PETROAN National President, explained that petrol prices are now dictated by market forces under the Petroleum Industry Act (PIA).
“Retailers are not responsible for price increases. We buy at fluctuating rates and cannot sell below cost. The price variations are influenced by global crude prices and exchange rate instability,” he said.
Similarly, Hammed Fashola, Vice Chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN), highlighted market competition, stating:
“If a marketer sets prices too high, consumers will simply buy elsewhere. The market regulates itself.”
He advised station owners to conduct thorough market analysis before making purchases to avoid financial losses.
The latest fuel price hike has sparked strong opposition from labour unions, who argue that workers and the masses are being sidelined in critical economic decisions.
While Dangote Refinery and oil marketers attribute the price surge to global market forces, labour leaders insist that Nigerians deserve a transparent and fair pricing system.
With crude oil prices expected to remain volatile, further fuel price fluctuations appear inevitable, keeping the debate over deregulation and fuel affordability alive.
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