NLC Raises Alarm As Petrol Prices Rise, Marketers Warn of N2,000
- Petrol prices climbed to as high as N1,520 per litre in several Nigerian states, pushing up transport fares across the country
- The Dangote Petroleum Refinery raised its gantry price to N1,350 per litre on September 12
- The Nigeria Labour Congress urged the government to introduce wage awards and increase crude oil supplies to local refineries
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Petrol prices in Nigeria have climbed to as high as N1,520 per litre in some states, driving up transport costs and prompting the Nigeria Labour Congress (NLC) to demand government action to protect workers and consumers.
The NLC said on Wednesday, September 17, that petrol was selling for about N1,430 per litre in major cities, with prices rising further in harder-to-reach areas.
Source: Twitter
In parts of Damaturu, prices ranged between N1,500 and N1,520 per litre, while Kano, Sokoto, Borno, Taraba and Zamfara all recorded prices of N1,500 per litre.
Transport fares follow fuel prices up
The rising petrol costs have quickly fed into commuter expenses. In Kano, tricycle operators increased fares on short routes to N300 from N200, while in Benue, a journey that used to cost N400 now costs N600.
The price surge follows Dangote Petroleum Refinery's decision to raise its gantry price to N1,350 per litre from N1,265, effective September 12.
That N85 adjustment was the fourth such increase since August 21, bringing the refinery's cumulative price rise to N185 per litre, or about 15.9%, over that period.
Marketers warn of further increases
Chinedu Ukadike, publicity secretary of the Independent Petroleum Marketers Association of Nigeria, warned that prices could reach N2,000 per litre if crude oil costs continued to rise and the naira weakened further against the dollar.
Ukadike said:
"The first factor is the price of crude oil in the international market; the second is the dollar rate."
He called on the government to supply crude to domestic refineries under arrangements that would offer more predictable feedstock costs. He suggested refineries should hold enough crude to cover 60 to 90 days of production needs.
This, he argued, would reduce the immediate pressure that global oil price swings place on pump prices.
Source: Getty Images
The NLC echoed similar demands, calling for reasonable wage awards for workers, increased crude supplies to local refineries settled in naira, and greater national storage capacity for petroleum products.
The union also said government intervention, including subsidies, should not be ruled out in an emergency.
Nigeria scrapped its petrol subsidy in May 2023, leaving pump prices more exposed to shifts in international crude costs, foreign exchange rates and logistics expenses.
The government has since maintained that it has no plans to reimpose price controls, while pointing to expanded domestic refining capacity as a long-term solution.
Depots, marketers release new rates
Earlier, Legit.ng reported that petrol and diesel prices on Tuesday, September 15, were below current landing costs in several major markets, despite a surge in global crude oil prices.
Brent crude was trading at $108.60 per barrel as of 7:50 a.m. West Africa Time, up 2.79%, while U.S. West Texas Intermediate crude climbed 4.42% to $105.90 per barrel.
The increase pushed Nigeria's estimated landing cost for Premium Motor Spirit (PMS) to N1,420 per litre and Automotive Gas Oil (AGO) to N1,894 per litre.
Source: Legit.ng
