The Nigeria Labour Congress (NLC) and Organised Private Sector (OPS) are calling for an immediate reversal of the recent fuel price hike by the Nigerian National Petroleum Company Limited (NNPCL), which has raised the price of Premium Motor Spirit (PMS) to over N1,030/litre in Abuja and other locations.
The hike, representing a 14.8% increase in less than a month, follows a series of price surges since the current administration took office, resulting in a staggering 430% rise in petrol prices.
The NNPCL attributes the price increase to its debt burden of $6.8 billion owed to international suppliers. However, the public is outraged as these hikes have deepened economic hardships, with many retail stations failing to display prices and informing customers verbally.
This latest development comes days after NNPCL terminated its exclusive purchase agreement with Dangote Refinery, opening the market to other downstream players.
Analysts interpret this move as the Federal Government’s de facto removal of petrol subsidies, resulting in a significant jump in prices across the country.
Public Reaction and Economic Impact
Many Nigerians are struggling with the effects of these increases. In Abuja, petrol is being sold for as much as N1,200 per litre in some locations, while in other states such as Kwara, Borno, and Delta, prices range from N1,045 to N1,300 per litre. The cost of transportation has also skyrocketed, with fares in some areas rising by 30%.
The NLC condemned the price hike, labeling it an “aberration” and accusing the government of focusing solely on fuel price increments rather than addressing the economic crisis. NLC President Joe Ajaero urged the government to reverse the price increase, arguing that it would deepen poverty and cause further job losses.
The Organised Private Sector’s Response
The Organised Private Sector has also voiced concern. Segun Ajayi-Kadir, Director-General of the Manufacturers Association of Nigeria (MAN), highlighted how the price surge will impact production costs, making locally manufactured goods more expensive. The cost of distribution is expected to rise, worsening inflation and reducing consumer purchasing power. Ajayi-Kadir urged the government to consider measures to reduce fuel costs by offering incentives to local refiners like Dangote.
In response, opposition parties have accused the government of economic mismanagement, while ruling party officials attribute the hikes to unavoidable market forces in a fully deregulated sector. The ripple effects of this price increase are likely to continue shaping Nigeria’s economic landscape in the coming weeks.
The NNPCL’s decision to increase petrol prices amid mounting debt and deregulation has led to widespread public dissatisfaction and economic disruptions. As the NLC and OPS demand action, the government must navigate the complex economic and social ramifications of its fuel policy to prevent further hardship for Nigerians.