The latest increase in the price of Premium Motor Spirit, popularly known as petrol, has been rejected by the Nigeria Labour Congress. The labour condemned the hike as “avoidable and unacceptable” questioning why the Federal Government has not done more to ensure that the Dangote Petroleum Refinery gets adequate supplies of Nigerian crude.
The NLC acting General Secretary, Benson Upah, stated this in an interview with the press on Tuesday, while reacting to the latest increase in petrol prices.
Upah warned that the development would further compound the economic difficulties confronting ordinary Nigerians, especially workers and low-income households already struggling with high transportation, food and other living costs.
“This adds to the increasing difficulties of the average Nigerian for whom life has been Hobbesian.
“The latest increase is avoidable and unacceptable in light of falling prices in the international market and our local capacity to sell more crude oil to Dangote. Why are we not doing so?” he queried.
The NLC’s reaction came against the backdrop of another increase in the price of petrol by the Dangote Petroleum Refinery, which has triggered fresh concerns among motorists, transport operators and businesses already grappling with high operating costs.
The refinery raised its petrol gantry price by N65 per litre on Saturday, moving it from N1,200 to N1,265 per litre. The latest adjustment came only three days after the company increased the price from N1,185 to N1,200 per litre.
It was the third price adjustment by the refinery in eight days. On August 21, the company had raised its gantry price from N1,165 to N1,185 per litre.
Altogether, the three adjustments increased N100 to the price of petrol at the refinery’s gantry, representing an 8.6 per cent increase within just eight days.
The latest increase has since reverberated across the downstream market, with petrol prices varying from one location to another as marketers factor in transportation, logistics and other distribution costs.
In some parts of Lagos and Ogun, petrol is about N1,310 per litre, while prices in some northern states and areas farther from the refinery have climbed to N1,350 and above.
The renewed price increase is coming at a particularly sensitive time for Nigerians, many of whom are still struggling with the impact of the removal of the petrol subsidy in 2023.
The hike has revived an old but unresolved question in Nigeria’s petroleum sector: why does a crude-producing country with a major new refinery still face persistent pressure on petrol prices?
The question has become more prominent with the emergence of the Dangote refinery, which has a capacity to process about 650,000 barrels of crude oil daily and was expected to reduce Nigeria’s dependence on imported refined petroleum products.
But while the refinery has ramped up production, securing adequate quantities of Nigerian crude has remained a contentious issue.