The Nigeria Labour Congress has called on the Federal Government to introduce emergency measures to cushion Nigerians from the impact of rising petrol prices, including wage awards for workers and the sale of crude oil to local refineries in naira.
The NLC made the demand in a statement signed by its President, Joe Ajaero, on Wednesday, amid reports that petrol prices have climbed to about N1,430 per litre in major cities and are higher in some less accessible locations.
The labour centre warned that another increase in petrol prices could worsen the economic pressure on households and businesses by pushing up transportation costs and the prices of essential goods and services.
In the statement titled “Save the Situation Now,” the NLC urged the Federal Government to urgently implement measures aimed at protecting citizens from the latest fuel price increase.
The union specifically called for the payment of reasonable wage awards to workers as part of immediate relief measures.
It also demanded adequate crude oil sales in naira to local refineries and an expansion of Nigeria’s petroleum storage capacity to strengthen energy security and improve the country’s preparedness for emergencies.
According to the NLC, such interventions could ease pressure on households while also supporting employment, economic activity and national security.
The labour union said the latest petrol price increase occurred at a time when pressure on oil marketers to reduce pump prices following lower international crude prices had reportedly started producing results.
The NLC attributed the latest surge partly to the resurgence of conflict in the Gulf.
However, it argued that Nigeria’s position as a major oil-producing country should provide some protection against external shocks in the international energy market.
“As a nation, and as a people endowed with enormous fossil resources, we are deserving of a certain level of protection or buffer against the gales from the Gulf, and indeed, other gales,” the union said.
The NLC warned that higher transportation costs could feed into the prices of food, rent, school fees and other essential goods and services.
Ajaero said the government should not completely rule out subsidies where emergency circumstances require intervention.
“There is nothing wrong with government subsidising the needs of citizens, especially in emergency situations like this,” he said.
The NLC president said other oil-producing countries were adopting different interventions and palliative measures to protect their citizens from the impact of the global energy situation.
The union maintained that similar measures could be considered in Nigeria to prevent the latest petrol price increase from placing the entire burden on citizens.
The NLC also argued that the Federal Government had benefited from higher international crude oil prices.
According to the union, crude oil was selling about $35 to $40 per barrel above the benchmark used in the national budget.
It described the additional revenue as a potential windfall that could provide fiscal space for measures designed to cushion Nigerians from the rising cost of living.
The NLC said part of the additional revenue could be channelled towards emergency support for workers and other vulnerable citizens.
The labour centre also expressed concern over reports that some domestic refineries were importing crude oil.
The union described the development as inconsistent with the objective of expanding Nigeria’s domestic refining capacity.
“On a long-term basis, we are equally concerned that local refineries are importing crude. This is unreasonable and unacceptable and defeats the logic and purpose of local capacity,” the NLC said.
The union called for policies that would ensure local refineries have sufficient access to crude oil while strengthening Nigeria’s ability to meet domestic fuel demand.
The latest increase comes against the backdrop of Nigeria’s deregulated downstream petroleum market following the removal of the petrol subsidy in May 2023.
Under the current framework, domestic petrol prices are more directly affected by international crude oil prices, foreign exchange costs, logistics and other market factors.
The Federal Government and industry regulators have also pursued measures aimed at expanding domestic refining capacity and reducing dependence on imported petroleum products.
The development of large-scale private refining capacity and efforts to rehabilitate government-owned refineries have formed part of the government’s strategy to improve domestic supply and reduce exposure to international market fluctuations.
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However, movements in crude prices, exchange rates and supply-chain costs continue to affect petrol prices and transportation expenses, with wider implications for household purchasing power and inflation.
The NLC urged the Federal Government to respond quickly to the latest petrol price increase rather than allow workers and other citizens to bear the full impact.
Ajaero said the government, which he noted was seeking re-election in the coming months, should not stand by while Nigerians face additional hardship.
“Labour has an obligation to speak out or act accordingly,” he added.
The NLC’s demands come as petrol prices continue to put pressure on household budgets and business operating costs across the country.
