NLC CONDEMNS FRESH PETROL HIKE, URGES FG TO PRIORITISE DOMESTIC CRUDE SUPPLY

The Nigeria Labour Congress has rejected the latest increase in the price of Premium Motor Spirit, popularly known as petrol, describing the development as unnecessary and warning that it could further worsen the economic pressure facing Nigerian households.

The labour centre also called on the Federal Government to ensure that more locally produced crude oil is supplied to the Dangote Petroleum Refinery and other domestic refineries, arguing that stronger domestic crude availability could help stabilise petrol prices and reduce pressure on consumers.

The NLC Acting General Secretary, Benson Upah, made the position known while reacting to the latest adjustment in petrol prices. He questioned the rationale for increasing the price of the product at a time when international crude prices had been falling and Nigeria's domestic refining capacity was expanding.

Upah described the latest increase as “avoidable and unacceptable,” arguing that Nigeria should be taking advantage of its crude production capacity to provide more feedstock for local refineries rather than allowing domestic consumers to bear additional costs.

According to the labour leader, the latest price adjustment would place an additional burden on ordinary Nigerians who are already dealing with elevated transportation costs, food prices and other living expenses. He warned that workers and low-income households would be particularly affected by another increase in the cost of petrol.

The NLC's reaction followed the latest increase announced by the Dangote Petroleum Refinery, which raised its petrol gantry price from N1,200 to N1,265 per litre. The adjustment represented the third price change by the refinery within eight days, according to reports.

The labour union questioned why Nigeria, despite being a major crude oil producer and having a large-scale refinery with the capacity to process about 650,000 barrels of crude per day, continues to experience pressure over petrol prices.

The Dangote refinery has increasingly become central to Nigeria's efforts to expand domestic petroleum refining and reduce reliance on imported refined products. However, securing sufficient quantities of Nigerian crude for the facility has remained a contentious issue.

Recent data from the Nigerian Upstream Petroleum Regulatory Commission showed that oil producers offered 68.1 million barrels of crude to the Dangote refinery during the second quarter of 2026. The refinery's stated requirement for the period was 63 million barrels, but it actually accepted only 52.6 million barrels.

The figures have intensified discussions over domestic crude supply, with stakeholders pointing out that the challenge is not simply about the volume of crude available. Issues surrounding pricing, commercial agreements, crude quality, transportation and delivery arrangements also affect how much crude reaches local refineries.

The NLC believes that resolving these challenges could help Nigeria derive greater value from its petroleum resources while supporting more stable domestic fuel prices. The union is therefore calling for a stronger framework that guarantees adequate crude supply to local refineries.

The latest petrol price increase is also occurring against the backdrop of improving Nigerian crude production. Official figures cited in the report showed that the country's crude oil production averaged 1.72 million barrels per day in the second quarter of 2026, up from 1.55 million barrels per day in the first quarter.

For organised labour, the increase therefore raises questions about how the benefits of higher crude production and expanding domestic refining capacity are being passed on to consumers. The NLC argues that Nigerians should ultimately feel the impact through more affordable and predictable energy costs.

The controversy also comes amid wider volatility in the international oil market. Recent movements in global crude prices have added another layer of uncertainty to Nigeria's downstream petroleum sector, with changes in international prices potentially affecting the cost of refined products and domestic pricing decisions.

The labour congress is consequently urging the Federal Government and relevant petroleum authorities to intervene by improving crude supply arrangements for domestic refineries and addressing factors that contribute to repeated petrol price adjustments.

The NLC's position is likely to fuel renewed debate over Nigeria's petroleum-sector reforms, particularly the relationship between crude production, domestic refining, petrol pricing and the cost-of-living crisis.

As consumers continue to contend with high transportation and living expenses, the union maintains that increasing domestic refining capacity should ultimately translate into greater price stability rather than repeated increases in the cost of petrol.