Business
NLC urges action on inflated petrol prices amid industry dispute
The Nigerian Labour Congress (NLC) has voiced serious concerns over escalating petrol prices, suggesting that current rates are artificially higher than the true market value.
In a detailed statement released on Sunday and signed by President Joe Ajero, the NLC accused influential figures within the petroleum sector of manipulating prices to generate excessive profits at the expense of Nigerian consumers.
Ajero highlighted that these alleged pricing strategies are central to a widening dispute between Dangote Refinery and independent marketers.
“The NEC-in-session observed with dismay the machinations surrounding petrol pricing in Nigeria. It’s evident that an orchestrated scheme involving major industry players is pushing prices far beyond reasonable market levels,” Ajero stated.
Expert Analysis and Industry Reactions Energy analyst Dr. Nkechi Emeka commented on the NLC’s stance, saying, “The NLC’s claims resonate with broader concerns about monopolistic practices. If local refineries remain inactive, it perpetuates dependency on major suppliers who can set prices with minimal competition.”
The NLC’s statement also questioned why public refineries, such as those in Port Harcourt and Warri, remain offline. “Ensuring the operational status of these refineries would break the monopoly and stabilize prices,” Emeka added.
Petroleum economist Samuel Oyeleke weighed in, noting that the government’s subsidy removal had exposed gaps in regulation.
“Without effective oversight, price volatility will continue, and consumers bear the brunt. The call for activating domestic refineries is long overdue,” Oyeleke emphasized.
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The fuel market has been strained since the Dangote Refinery began selling petrol at rates between N970 and N990 per liter, attributing its pricing to current market dynamics.
The refinery argues that importers claiming lower costs might be involved in dubious practices such as the distribution of substandard fuel or crude oil theft.
An official from the Dangote Group remarked, “Our pricing reflects global benchmarks and domestic realities. Competing against potentially tainted or illicit supplies compromises both safety and market fairness.”
In response, some independent marketers have pushed back, advocating for broader petrol importation to reduce consumer prices. This disagreement has escalated into a legal confrontation, with court proceedings set to determine the outcome.
The NLC’s communique concluded with a demand for fair petrol pricing and an urgent call to reactivate the public refineries in Port Harcourt, Warri, and Kaduna. Ajero stressed that this move could dismantle the “monopolistic stranglehold” and foster competition that benefits Nigerian consumers.
The Nigerian National Petroleum Corporation (NNPC) Limited, which has periodically increased prices citing market conditions, may face mounting pressure as public dissatisfaction and legal disputes challenge the status quo.