The Organised Private Sector and the Nigeria Labour Congress (NLC) have urged the Federal Government to take urgent action as petrol prices climb close to N1,400 per litre in parts of the country, raising concerns about rising inflation, job losses, and possible business shutdowns.
The increase follows repeated price adjustments by the Dangote Petroleum Refinery, which recently raised its ex-depot price to about N1,275 per litre, its fifth increment in March. This has added pressure to Nigeria’s deregulated downstream petroleum sector.
After the latest adjustment over the weekend, pump prices rose from around N1,240 to nearly N1,400 depending on location. Reports indicate higher prices in northern states, while consumers in Lagos and Ogun pay about N1,340 per litre.
The surge has been linked to tensions in the Middle East involving the United States, Israel, and Iran, which have pushed global oil prices higher. As a result, domestic fuel costs have also increased, worsening the cost of living.
Petrol prices have risen by roughly N500 from an average of N839 recorded before February 28. Analysts warn that prices could rise to between N1,500 and N2,000 if the crisis persists, especially if key oil routes, such as the Strait of Hormuz, are disrupted.
Stakeholders have called on the government to introduce relief measures, including tax incentives for refiners, the supply of crude oil in naira, and temporary subsidies, while also fast-tracking long-term energy reforms.
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However, regulators and fuel marketers maintain that the government cannot fix prices due to the deregulated nature of the sector.
The NLC blamed the rising costs on what it described as monopoly control in the downstream petroleum industry, arguing that Nigerians are bearing the consequences. The union compared the situation to the cement sector, noting that locally produced cement is sometimes more expensive than in neighbouring countries like Ghana and Rwanda.
According to the NLC, the market currently operates in favour of sellers, allowing dominant players to determine prices. The union also criticised the government’s role, alleging support for major operators while ordinary Nigerians receive little benefit.
The labour group insisted that public refineries could function effectively if properly managed and staffed. It also called on citizens, workers, and unions to unite in challenging what it described as economic concentration in essential sectors.
Similarly, the Acting Secretary-General of the NLC, Benson Upah, noted that global conflicts often disrupt oil markets, but Nigeria’s situation is worsened by weak local safeguards.
He explained that many countries maintain strategic petroleum reserves to cushion such shocks, but questioned Nigeria’s readiness, suggesting that either such reserves do not exist or were not deployed when needed.
Upah added that while reserves are not a permanent solution, they can help reduce immediate impacts and give governments time to respond effectively.
