Fuel Crisis Deepens as PENGASSAN Strike Grounds Petrol Supply and Power Generation
- The strike against Dangote Refinery by PENGASSAN triggered sharp drops in power supply
- The union’s actions have caused a rise in petroleum product prices, especially petrol and diesel
- Most importantly, the strike has crippled the power supply in most parts of the country, as thermal stations gasp for gas supply
Pascal Oparada, a reporter for Legit.ng, has over ten years of experience covering technology, energy, stocks, investment, and the economy.
Nigeria’s energy sector is reeling from the ongoing strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), now in its third day.
The industrial action has forced filling stations to shut down, pushed petrol prices higher, and triggered a sharp decline in electricity supply across the country.
Source: UGC
Petrol stations shut, black market resurfaces
Across Abuja and other major cities, commuters and motorists were left stranded on Tuesday as most filling stations remained shut in compliance with the union’s directive.
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Long queues resurfaced where a handful of outlets were dispensing fuel, while black market operators returned to the streets selling petrol at inflated prices.
The situation has led to fresh concerns about a looming nationwide scarcity, with reports that pump prices have already spiked in some locations.
Key oil agencies affected
According to a report by Vanguard, the strike has not only hit retail fuel supply but has also disrupted critical government agencies in the petroleum value chain.
Operations at the Nigerian National Petroleum Company Limited (NNPC Ltd.), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) have been largely paralysed.
Industry watchers warn that a prolonged standoff could trigger widespread fuel shortages, paralyse government revenue streams, and deepen inflationary pressures in an already strained economy.
Power supply plunges below 3,500MW
The strike's impact has spread to the power sector. According to grid data, electricity generation dropped below 3,500 megawatts on Tuesday morning, falling from over 4,300MW megawatts recorded on Sunday, September 28.
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By 6 pm, power allocation to distribution companies had shrunk further: Abuja DisCo received 509MW, Ikeja Electric 502MW, and Eko DisCo 427MW. Most gas-fired plants went offline due to disrupted gas supply, leaving Delta (404MW) and Odukpani NIPP (209MW) as the main contributors to the national grid.
System operator moves to prevent total blackout
In response, the Nigerian Independent System Operator (NISO) confirmed that the shortfall was caused by labour-induced disruptions in the gas supply chain.
The agency said it had implemented emergency interventions, including increased hydropower generation, real-time load balancing, and selective load shedding, to prevent a nationwide blackout.
“These timely actions minimised the impact of the labour-induced gas shortages and sustained supply to critical loads,” NISO said in a statement, stressing its commitment to grid stability.
Dispute rooted in Dangote Refinery sackings
At the centre of the crisis is the dispute between PENGASSAN and the $20 billion Dangote Petroleum Refinery.
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Reports indicate the strike was sparked by the alleged disengagement of about 800 workers, which the union has condemned as unlawful and unfair.
Source: Getty Images
Efforts at mediation have so far stalled, raising fears that the strike could escalate further and plunge the country into a deeper fuel and power crisis.
PENGASSAN: Power stations get notice to shut down
Legit.ng earlier reported that Nigerians are bracing for a nationwide blackout beginning Monday, September 29, 2025, as power generation firms have raised the alarm over an imminent disruption of thermal plants.
The GenCos said they have received a notice from the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) to shut down thermal stations.
According to a Punch report, Joy Ogaji, the executive secretary of the Association of Power Generating Companies (APGC), raised the alarm over the imminent nationwide blackout on Sunday, September 28, 2025, in a WhatsApp message.
Source: Legit.ng
