The Nigeria Labour Congress (NLC) has criticised the latest increase in the price of Premium Motor Spirit, popularly known as petrol, describing the development as unnecessary and unacceptable.
The labour union also questioned why the Federal Government has not done more to ensure that the Dangote Petroleum Refinery receives sufficient quantities of locally produced crude oil.
The NLC Acting General Secretary, Benson Upah, spoke on Tuesday while reacting to the latest petrol price adjustment.
Upah warned that the increase would place additional pressure on Nigerians, particularly workers and low-income households already dealing with high transportation, food and other living expenses.
He argued that the latest adjustment was difficult to defend given the situation in the international oil market and Nigeria’s increasing domestic refining capacity.
According to the labour leader, Nigeria should be doing more to make its crude available to domestic refineries, particularly the Dangote facility.
Dangote refinery raises petrol price
The NLC’s position followed another increase in the refinery’s petrol gantry price.
The Dangote Petroleum Refinery increased its petrol price by N65 per litre on Saturday, from N1,200 to N1,265 per litre.
The adjustment came just three days after the refinery moved its price from N1,185 to N1,200 per litre.
It was the refinery’s third price increase within eight days. On August 21, the gantry price had risen from N1,165 to N1,185 per litre.
The three adjustments have collectively added N100 per litre, representing an 8.6 per cent increase in the refinery’s gantry price over the eight-day period.
The latest adjustment has also affected prices across the downstream petroleum market, although pump prices differ depending on transportation, logistics and other distribution expenses.
Petrol has reportedly sold for around N1,310 per litre in parts of Lagos and Ogun, while some northern states and locations farther from the refinery have recorded prices of N1,350 and above. In some areas, pump prices are approaching N1,400 per litre.
Subsidy removal continues to affect consumers
The latest increase comes as households and businesses continue to deal with the effects of the 2023 petrol subsidy removal.
The policy changed Nigeria’s petrol pricing system, making consumers more exposed to factors such as crude oil prices, foreign exchange movements and other market-related costs.
Since then, petrol prices have undergone several adjustments, with increases often translating into higher transportation costs and more expensive goods and services.
The development has also renewed questions over why petrol prices remain under pressure despite Nigeria’s emergence as a major crude producer with a large-scale refinery operating domestically.
Crude supply remains contentious
The Dangote Refinery, which has a processing capacity of approximately 650,000 barrels of crude oil per day, was expected to significantly reduce Nigeria’s reliance on imported refined petroleum products.
However, access to sufficient Nigerian crude has remained a major issue for the refinery.
A recent Reuters report indicated that between 30 and 40 per cent of the crude processed by the facility is imported, despite Nigeria being a significant oil-producing country.
The refinery has repeatedly sought increased access to locally produced crude at competitive prices as it works to raise production.
Data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) also shows the complexity of the supply situation.
According to the figures, oil producers offered the Dangote Refinery 68.1 million barrels of crude in the second quarter of 2026, compared with the refinery’s stated requirement of 63 million barrels.
However, the refinery actually accepted 52.6 million barrels, a volume below both the quantity offered and its stated requirement.
The figures suggest that the dispute is not solely about crude availability but also involves issues such as pricing, commercial agreements, crude quality, transportation and delivery arrangements.
The Federal Government and petroleum regulators have consequently faced calls to review the framework for supplying crude to domestic refineries.
Nigerians await benefits of domestic refining
The expansion of local refining was expected to do more than move petrol production from overseas to Nigeria. It was also intended to build a stronger petroleum market by converting more of the country’s crude into refined products locally.
Such a system could reduce Nigeria’s exposure to international supply disruptions and foreign exchange pressures.
However, consumers have yet to see sustained relief at the pump as petrol prices continue to rise.
The increases have occurred even as Nigeria’s crude production has improved.
Official figures show that crude production averaged 1.72 million barrels per day in the second quarter of 2026, compared with 1.55 million barrels per day in the first quarter.
This has created growing concerns over the apparent disconnect between higher crude production, expanded domestic refining capacity and rising petrol prices.
Impact on households and businesses
The consequences of rising petrol prices extend beyond motorists.
Petrol plays a major role in Nigeria’s transportation and distribution networks. Higher prices can increase commuting expenses, raise the cost of moving agricultural and manufactured products, and increase operating expenses for businesses that rely on petrol-powered generators.
These additional costs are frequently transferred to consumers through higher prices for food, transportation and other essential goods and services.
The situation has become particularly difficult for workers whose earnings have struggled to keep up with the rising cost of living.
Against this backdrop, the NLC is challenging the government to ensure that Nigeria’s crude resources are effectively used to support domestic refining.
Upah’s comments also raise questions about whether the benefits of increased crude production and local refining are reaching ordinary Nigerians.
Although petrol prices are influenced by market forces under the post-subsidy regime, the labour movement maintains that government policies can still affect important structural factors, including crude supply arrangements, refinery utilisation and domestic energy policy.
For the NLC, the latest price increase goes beyond another adjustment at the pump. It represents a test of whether Nigeria’s petroleum reforms are achieving the promised goals of energy security, stronger domestic refining and economic relief for Nigerians.
Source: PUNCH
