The Organised Private Sector and the Nigeria Labour Congress on Monday called for urgent government intervention as petrol prices surged towards N1,400 per litre across parts of the country.
There are already fears of worsening inflation, job losses, and business closures.
The development follows successive price increases by the Dangote Petroleum Refinery, which recently raised its ex-depot price to about N1,275 per litre, marking its fifth hike in March.
The price hikes which were occasioned by the ongoing escalation of the crisis in the Middle East have intensified concerns over pricing dynamics in Nigeria’s deregulated downstream petroleum sector.
Following the last hike over the weekend, petrol prices jumped from N1,240 to nearly N1,400, depending on the location. Reports have it that the petrol prices are higher in the North, while those in Lagos and Ogun still buy at the rates around N1,340.
The surge in petrol prices was triggered by the US-Israel-Iran war in the Middle East. As oil prices rise, the Dangote refinery also hikes fuel prices in Nigeria, fuelling an increase in the cost of living.
From an average of N839 before February 28, a litre of petrol has risen by about N500. Analysts fear that the price could hit N1,500 to N2,000 if the crisis continues with the Strait of Hormuz closed.
Stakeholders, in separate interviews, urged the Federal Government to introduce immediate relief measures, including tax incentives for refiners, naira-based crude supply, and temporary subsidies, while accelerating long-term reforms in the energy sector.
However, the regulator and marketers argued that the Federal Government cannot cap petrol prices as done in China, saying the sector is deregulated.
The Nigeria Labour Congress said Nigerians are paying the price for alleged monopoly in the downstream petroleum sector. The NLC Assistant Secretary-General, Onyeka Chris, said that the poor Nigerian workers and the masses are “reaping the consequences of adopting a monopolist”.
The union drew parallels with the cement industry, questioning why Nigerian-made cement is reportedly more expensive than in neighbouring countries like Ghana or Rwanda.
The NLC emphasised that the downstream petroleum market operates as a “seller’s market”, in which dominant players control prices. “A monopoly commands the market. The seller determines the price and fixes it the way he wants,” the labour group said.
It added that statistics show Nigeria has the highest income credit for refined petroleum products, yet ordinary Nigerians receive none of the benefit. The union also blamed the government, saying, “The government sponsors them, repairs them, compensates them, and makes them the monopolist.”
It added that public refineries could operate efficiently if the existing workforce were properly engaged and managed. The NLC warned that Nigerians must organise to counter the economic concentration.
“Until we organise ourselves and exercise our sovereign will, there will be no mercy. We will not benefit from this country. Unions, workers, students, artisans, and citizens need to act together to challenge monopolistic control over essential commodities,” the NLC official stated.
The Congress added that the monopolistic control in the petroleum sector reinforces calls for urgent government action to ensure fair fuel pricing and protect consumers.
Also, the Acting Secretary-General of the NLC, Benson Upah, told one of our correspondents that geopolitical upheavals in the oil-rich Middle East have historically triggered shocks in the global oil market, but Nigeria’s vulnerability has been amplified by weak domestic buffers.
Upah noted that countries with stronger economic management typically maintain strategic petroleum reserves to cushion such shocks. “In anticipation that conflicts are inevitable and could rapidly degenerate, serious governments build strategic reserves by way of massive storage tanks,” he said.
He, however, stressed that such reserves were not permanent solutions but temporary buffers designed to stabilise markets and give governments time to respond.
“Strategic reserves are no permanent solutions.
They are intended to minimise sudden shocks or impacts as well as give the government time to respond more coherently to the unravelling of the market,” he added.
The labour leader questioned Nigeria’s preparedness, arguing that the near-instantaneous impact of the crisis suggests either an absence of reserves or a failure to deploy them effectively. “The impact on us was instantaneous, suggesting there were no reserves, and if, per chance, there were, they were not released,” Upah stated.
On policy responses, Upah cautioned against adopting price caps, noting that Nigeria’s economic structure differs significantly from countries like China, where such measures have been used.
“Price caps are not it. We run two different economic systems. Whereas theirs might be working perfectly well, such a decision here could lead to unintended consequences,” he said.
Instead, he advocated a temporary subsidy framework targeted at “the source” to cushion consumers without distorting the broader market. “The government should provide temporary subsidies at the source. That will be beneficial to all,” he added.
More fundamentally, the NLC chief called for a structural shift in Nigeria’s oil and refining strategy, urging the Federal Government to supply crude oil in naira to domestic refineries, including the Dangote refinery.
“The government is advised to sell in naira enough crude to the Dangote refinery and any other functional refinery to process crude for local consumption and the surplus for export,” Upah said.
While higher global oil prices typically boost government revenues, Upah warned that the current windfall may not be sufficient to offset the broader economic fallout. “Although the government is making stupendous money from the crude oil market at the moment, I doubt the windfall will be sufficient to cover our needs,” he said.
The NLC boss also warned of a potential inflation spiral driven by rising energy costs, which could trigger wider economic and social consequences. “It is of utmost importance that the government takes proactive measures to protect the gains of its policies by pre-empting or managing inflation spirals and shutdowns due to prohibitive energy costs. These things have their social dimensions we can’t readily predict,” Upah said.
Upah concluded by urging the government to prioritise citizen welfare, noting that even non-oil-producing countries often deploy protective measures during global crises. “In light of this, if non-oil-producing countries offer some level of protection to their citizens in these precarious times, we expect our government to do more,” he said.
