The Nigeria Labour Congress has called on the Federal Government to urgently introduce measures to reduce the effect of rising petrol prices on workers, households and businesses as the pump price climbs to about ₦1,430 per litre in major Nigerian cities.
The NLC made the demand in a statement issued on Wednesday and signed by its President, Joe Ajaero, amid growing concerns over the effect of the latest increase on the cost of living.
The labour body said fuel prices were even higher in some areas that are difficult to reach, warning that the development could further increase the financial pressure on Nigerians.
According to the NLC, any sharp rise in transportation costs usually affects the prices of food, accommodation, school fees and other basic needs. It therefore urged the government to take immediate steps to prevent the latest petrol increase from putting more pressure on citizens.
The union said the price increase occurred at a time when efforts by the government to persuade oil marketers to reduce petrol prices following a fall in international crude prices were beginning to show some results.
The NLC linked the new increase to renewed conflict in the Gulf, which it said had affected developments in the international oil market. However, the labour organisation argued that Nigeria, as an oil-producing country, should have measures in place to protect its people from sudden global energy shocks.
It called for the introduction of emergency palliatives to support Nigerians affected by the increase and asked the government to provide reasonable wage awards for workers.
The NLC also demanded that the Federal Government make enough crude oil available to local refineries and sell the crude to them in naira. It said the measure would support domestic refining and reduce the pressure created by international market movements.
The labour body further called for an expansion of Nigeria’s petroleum storage facilities, saying stronger storage capacity would improve energy security and help the country respond better to emergencies.
The union said such interventions could provide relief for households while also supporting economic activities, creating employment and helping to reduce some security pressures.
The NLC also stated that government support for citizens, including subsidies, should remain an option during an emergency. It argued that countries that produce oil were already adopting different measures to protect their populations from the effects of the current global energy crisis.
The labour organisation also questioned the reported decision by some domestic refineries to import crude oil. It said the development raised concerns about the country’s efforts to build a strong local refining industry, particularly when the government is encouraging domestic production.
The NLC said the Federal Government had also benefited from the rise in international crude prices. It claimed that crude oil was trading about $35 to $40 per barrel above the benchmark used in the national budget.
According to the union, the additional income could provide the government with more room to introduce measures that would reduce the effect of higher fuel prices on Nigerians.
The latest petrol price increase comes more than three years after the Federal Government removed petrol subsidy in May 2023, leading to a deregulated downstream petroleum market.
Since then, pump prices have been affected by movements in international crude prices, foreign exchange rates, transportation expenses, supply conditions and other market forces.
The government has responded by promoting domestic refining and supporting efforts to increase local petroleum production. The rehabilitation of government-owned refineries and the expansion of private refining capacity have also formed part of efforts to reduce Nigeria’s dependence on imported petroleum products.
Despite these measures, changes in crude prices, exchange rates and distribution costs continue to affect the price of petrol and transportation. The impact is also felt across other areas of the economy as higher transport costs can raise the cost of moving food and other goods.
The NLC urged the Federal Government to respond quickly to the situation instead of allowing workers and other Nigerians to bear the full burden of the latest fuel price increase.
The union also warned that the government’s approach to deregulation should not prevent it from taking steps to protect citizens when market conditions create severe hardship.
It said labour would continue to speak up on issues affecting workers and the wider population, particularly as the country approaches another election period.