NLC Demands Urgent Relief as Petrol Prices Surge Amid Global Oil Crisis

The Nigeria Labour Congress (NLC) has called on the Federal Government to urgently introduce relief measures to ease the growing economic hardship faced by Nigerians following the sharp increase in petrol prices.

In a statement titled “Save Nigerians From This Shock: An Urgent Relief Has Become Necessary,” and signed by its President, Joe Ajaero, on Sunday, the labour union said the latest fuel price hike has worsened the already difficult living conditions for workers and ordinary citizens.

The NLC demanded the immediate introduction of a wage award and a Cost-of-Living Allowance (COLA) for all workers to help cushion the impact of rising living costs. It also urged the government to expand and restructure the national Cash Transfer programme to ensure transparency and ensure that support reaches the most vulnerable citizens, with payments adjusted to reflect current inflation levels.

In addition, the union called for immediate tax relief for workers, including the suspension of what it described as regressive taxes on low-income earners, while also introducing taxation in the informal sector.

The labour group blamed the worsening situation on Nigeria’s exposure to volatile global oil prices, which it said had been triggered by the escalating conflict involving the United States, Israel, and Iran. According to the NLC, the international crisis has pushed petrol prices in Nigeria to between N1,170 and N1,300 per litre.

It argued that the development has exposed the weakness of Nigeria’s downstream petroleum sector and further increased the suffering of workers and their families. The union insisted that the government must urgently revive the country’s public refineries to reduce dependence on global oil market fluctuations.

The NLC also questioned the billions of naira spent on the turnaround maintenance of the nation’s refineries, insisting that the government must be held accountable for the funds. It further described the taxation of minimum-wage earners as exploitative.

The labour body stated that the ongoing global conflict has shaken oil markets and pushed crude oil prices higher, resulting in increased fuel costs worldwide. Brent crude reportedly rose by about three per cent on Monday, reaching approximately $106.50 per barrel.

Meanwhile, Nigeria’s downstream petroleum sector continues to experience significant instability, with marketers struggling to keep up with rapidly changing fuel prices.

The crisis in the Middle East has disrupted global oil supply chains, while concerns remain about the safe passage of oil tankers through the strategic Strait of Hormuz.

The NLC warned that the current situation highlights the dangers of neglecting public refineries, which it said could lead to monopolistic control in the downstream sector. It urged the government to fully rehabilitate and resume operations at the Port Harcourt, Warri, and Kaduna refineries to protect the country from global market shocks.

According to the union, the rising cost of petrol and diesel has made transportation increasingly expensive for workers, while food inflation continues to erode already low wages. It warned that if workers cannot afford transportation to their workplaces or basic meals for their families, the country risks serious social and economic instability.

The NLC also referenced projections by the Nigeria Economic Summit Group (NESG), which suggest that Nigeria could earn an estimated N30 trillion oil windfall due to the ongoing Middle East crisis. The union urged the government to ensure that such revenue is used to improve the welfare of citizens and cushion the current economic hardship.

The labour organisation further called on the government to engage in genuine dialogue with workers and the wider public, insisting that the Middle East crisis should not be used as justification for policies that deepen poverty.

Meanwhile, petrol prices in Nigeria have continued to fluctuate in response to market conditions.

On March 2, the Dangote Refinery increased its ex-depot petrol price from N774 to N874 per litre, citing rising crude oil prices and higher replacement costs. Within days, the price was raised again to N995 per litre, marking a N221 increase within four days.

The refinery later adjusted the price upward to N1,175 per litre — the fourth increase since early March — before temporarily reducing it by N100 to N1,075 per litre when crude oil prices briefly dropped.

However, with crude prices rising again, the refinery has reinstated the higher price of N1,175 per litre.

Reacting to the situation, the President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, said fuel price fluctuations are likely to continue as long as the war in the Middle East persists.

He warned that petrol prices could eventually reach N2,000 per litre if the conflict continues to push global crude oil prices higher.

Gillis-Harry also urged the Federal Government to establish a domestic energy bank to provide financial support for businesses in the energy sector, noting that many operators struggle to access loans from commercial banks.