The Nigeria Labour Congress (NLC) has called on the Federal Government to urgently introduce measures to cushion workers, households and businesses from the impact of the latest increase in petrol prices, which has pushed the product to about ₦1,430 per litre in major cities.
The labour centre specifically demanded reasonable wage awards for workers, adequate crude oil supplies to local refineries in naira and an expansion of the country’s petroleum storage capacity to strengthen Nigeria’s ability to respond to energy emergencies.
The NLC President, Comrade Joe Ajaero, made the demands in a statement issued on Wednesday and titled, “Save the Situation Now.”
According to the union, petrol now sells for around ₦1,430 per litre in major urban centres where the product is readily available, while prices are reportedly higher in less accessible areas.
The NLC warned that the development would further worsen the economic hardship facing Nigerians, particularly as higher transportation costs tend to trigger increases in the prices of food, rent, school fees, tariffs and other essential goods and services.
The union said the latest price surge was coming at a time when government pressure on oil marketers to reduce pump prices in line with lower international crude prices was beginning to produce results.
It attributed the fresh pressure on petrol prices partly to the resurgence of conflict in the Gulf but maintained that Nigeria’s status as an oil-producing country and its available local refining capacity should provide a measure of protection against international oil market shocks.
The NLC said Nigeria, being a country endowed with substantial fossil resources, deserved a certain level of protection or buffer against external shocks affecting the global energy market.
To create such a buffer, the labour organisation urged the Federal Government to immediately approve reasonable wage awards for workers, sell sufficient crude oil in naira to local refineries and expand national petroleum storage capacity as part of measures to prepare for energy emergencies and strengthen energy security.
According to the NLC, the proposed measures would not only reduce the immediate burden on Nigerians but could also create jobs, generate economic value and help address emerging security challenges.
The union also maintained that government intervention, including subsidies, should not be ruled out in emergency situations.
“There is nothing wrong with government subsidising the needs of citizens, especially in emergency situations like this,” Ajaero said.
The NLC argued that oil-producing countries were introducing different forms of intervention and sustainable palliatives to protect their citizens from the effects of the ongoing global energy crisis.
The labour centre further drew attention to the increase in international crude oil prices, claiming that the Federal Government was currently earning about $35 to $40 more per barrel than the benchmark used in the national budget.
It said the additional revenue amounted to a windfall that should provide the government with fiscal space to introduce measures capable of protecting Nigerians from the rising cost of living.
The NLC also expressed concern over reports that some local refineries were importing crude oil, describing the situation as unreasonable and unacceptable because, in its view, it defeats the purpose of developing domestic refining capacity.
The union therefore urged the government to ensure adequate domestic crude supply to local refineries in naira as part of efforts to strengthen local refining and reduce vulnerability to international market disruptions.
The latest petrol price increase comes against the background of Nigeria’s transition to a deregulated downstream petroleum sector following the removal of the petrol subsidy in May 2023.
The NLC maintained that immediate government intervention was necessary to prevent the latest increase in fuel costs from placing further pressure on the purchasing power and living conditions of Nigerian workers and other citizens. (punchng.com)
