NLC Rejects Petrol Price Hike, Demands More Crude For Refineries

The Nigeria Labour Congress has rejected the latest increase in petrol prices, describing the development as avoidable and unacceptable while calling on the Federal Government to ensure that more Nigerian crude is supplied to domestic refineries.

The labour organisation said the latest increase would further worsen the economic difficulties confronting workers and other Nigerians already struggling with high transportation, food and living costs.

NLC Acting General Secretary, Benson Upah, questioned the rationale behind the increase, particularly against the backdrop of falling international oil prices and Nigeria’s growing domestic refining capacity.

He argued that the government should do more to ensure that local refineries, particularly the Dangote Petroleum Refinery, have adequate access to Nigerian crude at competitive prices.

The latest development followed an increase in the Dangote refinery’s petrol gantry price from N1,200 to N1,265 per litre. It was the third adjustment by the refinery within eight days.

The three increases have cumulatively added N100 to the refinery’s petrol price, representing an 8.6 per cent rise within the period.

The price adjustment has begun to affect the downstream market, with petrol prices varying across different locations as marketers factor in transportation, logistics and other distribution costs.

In some parts of Lagos and Ogun, petrol has reportedly risen to around N1,310 per litre, while prices in some northern areas have reached N1,350 and above.

The NLC said the continued increases were particularly concerning because Nigerians were still dealing with the effects of the removal of petrol subsidy in 2023.

The subsidy removal exposed consumers to fluctuations in crude oil prices, foreign exchange movements and other market costs, resulting in repeated changes in petrol prices.

The labour union argued that Nigeria’s increased refining capacity should eventually reduce the country’s dependence on imported petroleum products and provide greater stability in the domestic market.

The Dangote refinery has a processing capacity of about 650,000 barrels of crude oil per day, but securing sufficient domestic crude has remained a major issue.

Industry figures showed that oil producers offered 68.1 million barrels of crude to the refinery in the second quarter of 2026, against its requirement of 63 million barrels. However, the refinery accepted 52.6 million barrels.

The NLC believes the government must address challenges surrounding domestic crude supply, pricing, refinery utilisation and distribution.

The union also warned that higher petrol prices would increase transportation costs, raise the cost of moving goods and services and place additional pressure on businesses and households.

It urged the government to ensure that Nigeria’s crude resources and expanding refining capacity translate into tangible economic benefits for ordinary citizens.

The labour movement maintained that Nigerians should not continue bearing the burden of rising petrol prices in a country with substantial crude oil production and growing domestic refining capacity.