The Nigeria Labour Congress (NLC) has called for urgent government intervention as petrol prices climbed to as high as N1,520 per litre in several states, with marketers warning that costs could reach N2,000 per litre if crude oil prices and the naira exchange rate worsen.
On Wednesday, September 17, the NLC reported that petrol was selling for approximately N1,430 per litre in major cities, with higher prices in remote areas. In Damaturu, prices ranged between N1,500 and N1,520 per litre, while Kano, Sokoto, Borno, Taraba, and Zamfara all recorded N1,500 per litre.
Dangote Refinery's Price Adjustments Drive Surge
The price increase follows Dangote Petroleum Refinery's decision to raise its gantry price to N1,350 per litre from N1,265, effective September 12. This N85 adjustment marked the fourth increase since August 21, bringing the refinery's cumulative price rise to N185 per litre, approximately 15.9%, over that period.
Transport fares have quickly reflected the rising fuel costs. In Kano, tricycle operators increased short-route fares to N300 from N200, while in Benue, a journey that previously cost N400 now costs N600.
Marketers Warn of N2,000 Per Litre
Chinedu Ukadike, publicity secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), warned that prices could escalate to N2,000 per litre if crude oil costs continue to rise and the naira weakens further against the dollar.
Ukadike said: "The first factor is the price of crude oil in the international market; the second is the dollar rate." He called on the government to supply crude to domestic refineries under arrangements that would offer more predictable feedstock costs, suggesting refineries should hold enough crude to cover 60 to 90 days of production needs.
NLC Demands Wage Awards and Crude Supply
The NLC echoed similar demands, urging the government to introduce reasonable wage awards for workers, increase crude supplies to local refineries settled in naira, and expand national storage capacity for petroleum products. The union also stated that government intervention, including subsidies, should not be ruled out in an emergency.
Nigeria scrapped its petrol subsidy in May 2023, leaving pump prices more exposed to shifts in international crude costs, foreign exchange rates, and logistics expenses. The government has since maintained it has no plans to reimpose price controls, while pointing to expanded domestic refining capacity as a long-term solution.
Market Context: Landing Costs and Global Crude
Earlier reports indicated that petrol and diesel prices on Tuesday, September 15, were below current landing costs in several major markets, despite a surge in global crude oil prices. Brent crude was trading at $108.60 per barrel as of 7:50 a.m. West Africa Time, up 2.79%, while U.S. West Texas Intermediate crude climbed 4.42% to $105.90 per barrel.
The increase pushed Nigeria's estimated landing cost for Premium Motor Spirit (PMS) to N1,420 per litre and Automotive Gas Oil (AGO) to N1,894 per litre. These figures highlight the pressure on pump prices as marketers face higher import costs, with the NLC and IPMAN both urging government action to mitigate the impact on consumers and workers.
