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Union Truck Charges Behind Fuel Price Hike, Says Dangote

Precious Innocent
ByPrecious Innocent
Union Truck Charges Behind Fuel Price Hike, Says Dangote

Africa’s richest man and President of the Dangote Group, Aliko Dangote, has accused the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) of imposing hidden truck levies that push up fuel prices nationwide.

Dangote alleged that the union collects as much as ₦50,000 per truck at the refinery gate, warning that the cumulative charges trickle down to consumers who already struggle with high pump prices.

Union Charges and Rising Pump Costs

Speaking to journalists on Sunday, Dangote described the alleged fees as “unsustainable rent-seeking” that discourages efficiency in the petroleum distribution chain.

“If a truck is going to load, NUPENG has been collecting about ₦50,000. By the time everybody adds their own charges, you’re looking at ₦80,000 to ₦84,000 per truck. Who pays that? The consumer pays,” he declared.

According to him, these hidden costs distort market fundamentals and further undermine the government’s efforts to stabilise fuel prices in the face of foreign exchange volatility and logistics challenges.

Dangote Defends CNG Fleet Strategy

The industrialist noted that his company had “learnt bitter lessons” as a fuel importer in the past when transporters allegedly held Dangote Group “by the neck.” This, he explained, informed the deployment of 4,000 Compressed Natural Gas-powered trucks to handle petroleum evacuation directly.

“Now that we have launched our own CNG trucks, we will not allow any group to hold us hostage. If there is no evacuation, there is nothing we can do,” he emphasised.

Dangote also insisted that union membership must remain voluntary, likening it to religion. “Even our workers if they want to join, fine. But no one should be forced,” he said.

NUPENG’s Vague Response

Contacted for comment, NUPENG’s President, Williams Akporeha, neither confirmed nor denied the allegations. Instead, he responded cryptically: “₦50k now? No more ₦1 per litre?”

The statement alluded to earlier viral claims that the union had imposed a ₦1 per litre levy, claims NUPENG had previously dismissed, demanding proof from accusers.

Experts Question Legality of Levies

Energy law expert Professor Dayo Ayoade challenged the legitimacy of the alleged fees, asking whether NUPENG was overstepping its mandate.

“The job of a union is to defend members and protect their jobs, not to impose taxes on petroleum loading. Is NUPENG now a tax agency? That is the real question,” he argued.

He further suggested that Dangote’s decision to self-manage distribution through CNG trucks could prevent a single body from holding the entire supply chain hostage.

Industry Implications

Analysts warn that if confirmed, such hidden levies effectively function as an informal tax on fuel consumers, worsening affordability for households and small businesses.

With pump prices already inflated by exchange rate pressures, logistics bottlenecks, and diesel reliance, stakeholders fear that unregulated charges at the refinery level could erode public trust in Nigeria’s refining sector at a critical moment.

Dangote’s refinery, expected to play a transformative role in ending Nigeria’s dependence on imported fuel, now faces union disputes that threaten distribution stability.

Call for Government Intervention

Experts have urged the Federal Government to investigate the allegations and establish clear regulatory frameworks for truck loading charges. They warn that unchecked union levies, coupled with blockades or strikes, could undermine confidence in the country’s downstream market.

“The government must strike a balance protecting workers’ rights while ensuring consumers are not subjected to arbitrary costs,” one analyst said.

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About the Author

Precious Innocent

Precious Innocent

Innocent Precious is a writer with a keen eye on Nigeria’s oil and gas sector, economic policy, and downstream petroleum developments. He translates complex industry trends, refinery operations, fuel pricing, tanker movements, and regulatory shifts into engaging, data-driven narratives. His work blends analytical depth with clarity, producing SEO-optimised content that informs, educates, and captivates readers. Passionate about storytelling, Goli Innocent bridges the gap between technical insights and public understanding, making the energy landscape accessible to all.

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Union Truck Charges Behind Fuel Price Hike, Says Dangote