The Nigeria Labour Congress (NLC) and the Organised Private Sector have strongly condemned the recent increase in petrol prices by the Nigerian National Petroleum Company Limited (NNPCL), calling for an immediate reversal. The price of Premium Motor Spirit (PMS), commonly known as petrol, has risen significantly to N1,030 per litre in Abuja, with similar hikes recorded across the country. In Lagos, petrol now sells for N998 per litre.
This marks the second price hike in a month, with the increase representing a 14.8% jump. The latest development comes just months after the NNPC raised the price to N897 per litre in September, prompting widespread public dissatisfaction. Since the current administration took office in May 2023, the price of petrol has surged by over 430%, placing additional financial strain on Nigerians.
At NNPC’s mega station in the Central Area of Abuja, customers expressed frustration over the lack of transparency, as the station failed to display prices. Instead, attendants verbally informed buyers of the new rate. One customer, speaking to *The PUNCH*, shared their frustration after waiting in line only to learn of the price hike after fueling.
Fuel prices have also risen sharply in other parts of the country. In Abuja, petrol is selling for as high as N1,200 per litre at some stations, while prices in states like Kwara, Edo, Delta, and Benue range between N1,100 and N1,300 per litre. In Borno State, the price has hit N1,250 per litre, with many stations remaining closed, causing artificial scarcity.
Impact on Transportation and Economy
The latest fuel price hike has already led to an increase in transportation costs. In Abuja, fares for routes such as Lugbe to Wuse have jumped from N700 to N1,000, while similar increases have been observed nationwide. With the price of petrol surpassing N1,000 per litre, many Nigerians fear the long-term economic consequences.
NLC’s Response
The NLC has been vocal in its opposition to the fuel price increase, demanding an immediate reversal. In a statement, NLC President Joe Ajaero criticized the NNPCL for acting as a monopolistic entity, setting fuel prices unilaterally. Ajaero called on the government to outline a comprehensive plan for economic growth instead of relying on sporadic price hikes.
Ajaero warned that the price increase would exacerbate poverty, reduce production capacity, and lead to further job losses. He urged the government to reconsider its approach, stating that previous increases had not benefited Nigerians and only deepened their economic challenges.
Concerns from the Organised Private Sector
The Organised Private Sector, including the Manufacturers Association of Nigeria (MAN), echoed similar concerns. Segun Ajayi-Kadir, the Director-General of MAN, said the price hike would increase production costs for manufacturers, leading to higher prices for locally produced goods. He also noted that the higher cost of transportation would further reduce consumers’ purchasing power, affecting sales and economic activity.
Ajayi-Kadir expressed hope that the government would find ways to reduce fuel costs, possibly by incentivizing local production at the Dangote Refinery, which recently began operations. He suggested that if the government could provide crude oil to local refineries at lower prices, it could serve as a form of subsidy for Nigerians, helping to mitigate the rising costs of petrol.
Bottom Line
As fuel prices soar, the NLC and the Organised Private Sector continue to push for a reversal of the recent hikes, warning of the severe economic implications for Nigerians. With transportation costs rising and disposable incomes shrinking, the latest development has sparked widespread concern about the affordability of essential goods and services. The government’s next steps will be critical in addressing the growing discontent and mitigating the economic fallout of the fuel price hikes.
