The Nigeria Labour Congress has urged the Federal Government to urgently introduce measures to cushion the impact of rising petrol prices, including reasonable wage awards for workers and the sale of crude oil to local refineries in naira.

The NLC made the demand in a statement signed by its President, Joe Ajaero, on Wednesday, as petrol prices reportedly rose to about ₦1,430 per litre in major Nigerian cities, with higher prices recorded in some less accessible locations.

The labour union warned that rising petrol prices would further increase economic hardship for Nigerians, noting that higher transportation costs often translate into increased prices of food, rent, school fees and other essential goods and services.

In the statement titled “Save the Situation Now,” the NLC said the latest petrol price increase came at a time when government pressure on oil marketers to reduce pump prices following lower international crude prices was beginning to yield results.

NLC Calls for Wage Awards, Naira Crude SalesThe NLC urged the Federal Government to immediately implement measures to shield households and businesses from the impact of rising fuel costs.

The union specifically called for reasonable wage awards for workers, adequate crude oil sales in naira to local refineries and an expansion of Nigeria’s petroleum storage capacity to strengthen energy security and improve the country’s preparedness for emergencies.

According to the NLC, the measures could help ease the pressure on Nigerians while also supporting job creation, economic activity and national security.The union also said government intervention, including subsidies, should not be ruled out during emergencies.

Ajaero argued that there was nothing wrong with government subsidising essential needs during an emergency, noting that oil-producing countries were introducing various interventions to protect their citizens from the effects of the global energy crisis.

NLC Raises Concerns Over Crude Oil Supply to Refineries

The labour union attributed the latest rise in global oil prices partly to renewed conflict in the Gulf, but argued that Nigeria’s status as an oil-producing country should provide some protection against international market shocks.

The NLC further claimed that Nigeria was benefiting from higher international crude prices, with crude reportedly selling about $35 to $40 per barrel above the benchmark used in the national budget.

It said the additional revenue should be treated as a windfall that could provide fiscal space for measures to protect Nigerians from rising living costs.

The union also expressed concern over reports that some local refineries were importing crude oil, arguing that the development undermines efforts to strengthen domestic refining capacity.

Petrol Price Increase Raises Cost-of-Living Concerns

The latest fuel price increase comes amid Nigeria’s deregulated downstream petroleum sector, following the removal of the petrol subsidy in May 2023.

Under the deregulated system, domestic petrol prices are more directly affected by factors including international crude oil prices, foreign exchange costs, transportation and supply-chain expenses.

The Federal Government has promoted increased domestic refining capacity as part of efforts to improve fuel supply and reduce Nigeria’s exposure to international market volatility.

The NLC, however, urged the government to take urgent action to prevent rising petrol prices from worsening the cost-of-living pressures facing workers and other Nigerians.

Ajaero said labour would continue to speak out over policies that increase the burden on citizens, warning that the government should not allow Nigerians to bear the full impact of rising fuel prices in the name of deregulation.