NLC Slams Latest Petrol Price Hike: Calls for More Local Crude for Refineries

The Nigeria Labour Congress (NLC) has vehemently criticized the recent surge in petrol prices, labeling it “avoidable and unacceptable.” NLC’s acting General Secretary, Benson Upah, raised concerns about the federal government's failure to ensure adequate crude supplies to the Dangote Petroleum Refinery, especially given the country's status as a major oil producer.

In a recent interview, Upah highlighted that the price hike would exacerbate the economic struggles of ordinary Nigerians, particularly those in low-income households already burdened by soaring transportation and living costs. He stated, “This adds to the increasing difficulties of the average Nigerian for whom life has been Hobbesian.”

Over the weekend, the Dangote Refinery raised its petrol price by N65 per litre, marking the third increase in just eight days. The price jumped from N1,200 to N1,265 per litre, reflecting an 8.6% rise amidst concerns over rising operational costs for motorists and businesses.

The NLC's reaction arrives in the wake of a broader economic context where petrol prices have been fluctuating due to the removal of the petrol subsidy in 2023. This policy change has left consumers vulnerable to international price fluctuations and foreign exchange rates, leading to substantial increases in the cost of essential goods and services.

Despite an uptick in Nigeria’s crude oil production, which averaged 1.72 million barrels per day in the second quarter of 2026, consumers are still facing higher petrol prices. This paradox raises critical questions about why a country with both crude resources and a new refinery continues to struggle with price pressures.

Data from the Nigerian Upstream Petroleum Regulatory Commission indicated that while 68.1 million barrels of crude were offered to the Dangote Refinery in Q2 2026, only 52.6 million barrels were accepted. This discrepancy highlights ongoing challenges in the domestic crude supply chain, including pricing and transportation issues.

The NLC's Upah emphasized the need for the government to leverage Nigeria's crude resources more effectively to benefit ordinary citizens rather than just industry players. He stressed that while market dynamics are crucial, the government still has a role in addressing structural issues that drive costs.

As the labour movement demands accountability, the pressing question remains: If Nigeria has both the crude and the refining capacity, why are petrol prices still on the rise? The NLC's call for reform could be pivotal in determining whether the promised benefits of domestic refining will ever materialize for everyday Nigerians.