NLC Demands Reversal of N1,030/Litre Fuel Price Amidst Resurfacing Queues
As fuel prices approach N1,300 per litre in various states, the Nigeria Labour Congress (NLC) has called for an immediate rollback of the recent price hikes instituted by the Nigerian National Petroleum Company Limited (NNPCL). The NNPCL has raised petrol prices from N897 to N1,030 per litre in Abuja, and from N868 to N998 per litre in Lagos, with similar increases observed nationwide, igniting public outrage.
This latest increase, occurring just a month after the previous adjustment, reflects a staggering 14.8% rise, equating to an additional N133 per litre. Since the current administration assumed power, petrol prices have skyrocketed by over 430%, a stark rise from the N617 per litre price set in May 2023.
The NNPCL’s recent price increase follows its admission of significant debts, totaling approximately $6.8 billion, owed to international suppliers. Customers at NNPCL stations reported discovering the new prices only after waiting in line, highlighting a lack of transparency as stations failed to display updated prices.
This price hike coincides with the NNPCL’s decision to end its exclusive purchasing agreement with Dangote Refinery, allowing other market players to source fuel directly. Analysts argue this move indicates a complete withdrawal of petrol subsidies by the government, transitioning the market to a “willing buyer, willing seller” framework.
In Abuja, prices soared as high as N1,200 per litre at certain stations. Public transport fares have already surged, with some routes witnessing increases from N700 to N1,000, exacerbating the financial strain on commuters.
The NLC has vocally criticized the government’s focus on price increases rather than addressing economic challenges. In a statement, NLC President Joe Ajaero described the current pricing strategy as monopolistic and harmful to the populace, urging the government to devise a more inclusive economic growth plan.
Similarly, the Organised Private Sector expressed concern over the impact of rising fuel costs on manufacturing and transportation. The Director-General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, noted that increased production costs could lead to higher prices for consumers, further squeezing disposable incomes.
Dr. Muda Yusuf, from the Centre for Promotion of Private Enterprise, described the price hike as poorly timed given the current economic climate and recommended a series of policy adjustments to ease the financial burden on citizens.
Responses from opposition parties like the Peoples Democratic Party (PDP) and the Labour Party condemned the government’s handling of the fuel price situation. They attribute the increase to policy inconsistencies and a lack of understanding of the oil sector’s complexities.
As fuel prices continue to climb, concerns mount about the broader implications for businesses and the economy, with many fearing job losses and a significant decline in consumer purchasing power.
