This comes after the Nigerian National Petroleum Company Limited (NNPCL) on Wednesday announced the new price of petrol from N898 to over N1,030 per liter, at various outlets across the country, sparking widespread concern.
Recall that the NNPCL is ending its exclusive purchase agreement with Dangote Refinery, opening up the market for other marketers to buy petrol directly from the refinery.
This means that the NNPC will no longer be the sole off-taker, and marketers can now negotiate prices directly with Dangote Refinery. This development aligns with the current practices for fully deregulated products, where refineries can sell directly to marketers on a willing buyer, willing seller basis.
However, NLC President Joe Ajaero voiced the union’s frustration, questioning why fuel prices continue to rise almost monthly while the minimum wage remains unaddressed.
In a statement titled “What Next After the Increase in Pump Price?” Ajaero expressed dismay at the government’s approach, noting that it fails to take into account the struggles of everyday Nigerians.
“This latest increase is unacceptable. It seems this government has no other strategy but to raise the cost of petrol, without considering the impact on people’s lives or offering any meaningful relief,” Ajaero said.
He also criticized the NNPCL for its role in setting prices, stating that it is inappropriate for a private company to hold such power, effectively creating a monopoly.
“The logic of market forces does not support this. It is wrong for a private company to have so much control over fuel prices, acting as a dominant force in the market,” Ajaero added.
He urged the government to develop a comprehensive economic plan that addresses the needs of all Nigerians, rather than relying on sudden price increases and short-term fixes. According to him, the latest hike would only worsen poverty levels, shrink production capacity, and cause job losses.
“We ask the government to reverse this price hike immediately. The previous increases have brought nothing but hardship. It’s time for the government to clearly outline where it intends to take the country and how it plans to improve the lives of its people,” Ajaero concluded.
