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Petrol Hits N1,400/Litre: OPS, NLC Call for Urgent Government Action

Published by Samuel Ayomide on March 24th, 2026.

As petrol prices surge toward N1,400 per litre in several parts of Nigeria, the Organised Private Sector (OPS)and the Nigeria Labour Congress (NLC) have urged the Federal Government to intervene, warning that unchecked hikes could exacerbate inflation, job losses, and business closures.

The recent spike follows a series of price adjustments by the Dangote Petroleum Refinery, which increased its ex-depot price to around N1,275 per litre, marking the fifth rise in March alone. Fuel now costs nearly N1,400 per litre in some northern states, while Lagos and Ogun still record rates around N1,340, according to reports monitored by The Punch and The Guardian Nigeria. The surge has been linked to geopolitical tensions in the Middle East, particularly the ongoing conflict involving the US, Israel, and Iran, which has driven global oil prices higher. Analysts caution that if the crisis continues, petrol could rise further to N1,500–N2,000 per litre, especially if the Strait of Hormuz remains closed.

The NLC criticised the perceived monopoly in Nigeria’s downstream petroleum sector, arguing that ordinary citizens bear the brunt of inflated prices. Onyeka Chris, NLC Assistant Secretary-General, told The Punch that Nigerian workers are “reaping the consequences of a monopolistic system” and called for structural reforms. The union also noted that public refineries could function efficiently if properly managed and staffed. NLC Acting Secretary-General, Benson Upah, stressed the importance of strategic petroleum reserves, arguing that Nigeria’s lack of buffers has left consumers highly vulnerable to external shocks.

“Strategic reserves are not permanent solutions but provide temporary relief while the government responds to market disruptions,” Upah said. He further advised against imposing price caps, citing Nigeria’s deregulated market, and instead recommended temporary subsidies at the source and naira-denominated crude supply to local refineries, including Dangote’s. Upah also warned that rising fuel prices could trigger broader economic consequences, including inflation spirals, higher transportation costs, and social disruptions, urging the government to act swiftly to protect citizens.

The Organised Private Sector, represented by Leye Kupoluyi, President of the Lagos Chamber of Commerce and Industry, attributed high pump prices partly to multiple taxes imposed on refiners. “There are 40 different types of taxeson them. Reviewing these taxes could ease the burden on consumers,” he said, according to The Nation Newspaper. Similarly, Adewale Oyerinde, Director-General of the Nigerian Employers’ Consultative Association (NECA), explained that global crude price realities continue to shape domestic fuel costs. While recognising the pressures on consumers, he stressed that refiners operate under international price benchmarks, limiting their ability to sell below market rates. Oyerinde warned that rising energy costs threaten business sustainability, particularly in manufacturing, agriculture, and logistics, with potential job losses and further inflation. He urged targeted government interventions to stabilise the market and support critical industries, while advocating for a long-term transition to cleaner energy sources.

Attempts to compare Nigeria’s situation with countries like China, where fuel price caps have been introduced, were rejected by industry stakeholders. George Ene-Ita, spokesman for the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), noted that capping prices in Nigeria’s deregulated market would effectively constitute regulation, which is outside the regulator’s mandate. Similarly, Chinedu Ukadike, IPMAN Publicity Secretary, said independent marketers will continue selling fuel based on supplier prices, warning against oversimplified comparisons to foreign markets.

Amid tensions, global oil prices fell to $98 per barrel on Monday from $112 on Sunday, following US President Donald Trump’s announcement of a temporary postponement of military strikes against Iranian power plants. Analysts say this could ease domestic fuel prices if sustained.