By Alex Igbekhe
The Nigeria Labour Congress has rejected the latest increase in the price of petrol, describing it as unjustified and calling on the Federal Government to prioritise the supply of crude oil to domestic refineries.
The acting General Secretary of the NLC, Benson Upah, who spoke in an interview on Tuesday, said the price increase would worsen the economic hardships facing Nigerians, particularly workers and low-income families already struggling with rising transportation and food costs.
“The latest increase is avoidable and unacceptable,” Upah said. “With falling prices in the international market and our local capacity to refine crude, why are we not doing more to supply Dangote refinery with Nigerian crude?”
The Dangote Petroleum Refinery raised its gantry price by N65 per litre on Saturday, from N1,200 to N1,265. The adjustment followed two other increases in the past week, bringing the total increase to N100 per litre within eight days.
On August 21, the refinery had raised its price from N1,165 to N1,185 per litre, and three days later, it increased it from N1,185 to N1,200. Saturday’s adjustment marked the third increase in just over a week.
The price hikes have since affected retail prices across the country, with petrol selling between N1,310 and N1,400 per litre, depending on location.
In Lagos and Ogun, the product is being sold for about N1,310 per litre, while in some northern states and areas farther from the refinery, prices have climbed to N1,350 and above. In some locations, petrol is approaching N1,400 per litre.
The NLC argued that Nigeria, as a major crude producer with a 650,000-barrel-per-day refinery, should not be experiencing such sharp increases in petrol prices.
Data from the Nigerian Upstream Petroleum Regulatory Commission showed that while oil producers offered 68.1 million barrels of crude to Dangote Refinery in the second quarter of 2026, the refinery accepted only 52.6 million barrels—below both the amount offered and its stated requirement of 63 million barrels.
The figures point to ongoing challenges in the domestic crude supply framework, including pricing, commercial terms, and delivery arrangements.
A Reuters report recently indicated that between 30 and 40 per cent of the crude processed by the Dangote refinery is imported, despite Nigeria being a major crude oil producer. The refinery has continued to push for greater access to domestic crude at competitive prices.
The latest price increase comes at a sensitive time for Nigerians, many of whom are still grappling with the impact of the removal of the petrol subsidy in 2023. The subsidy removal fundamentally altered the petroleum pricing regime, exposing consumers to movements in crude oil prices, foreign exchange rates and other market costs.
The NLC warned that continued price increases would undermine the benefits of domestic refining and called on the government to address the structural issues affecting crude supply to local refineries.
The labour congress also questioned why the government has not done more to ensure that the Dangote refinery receives adequate supplies of Nigerian crude, particularly at a time when the country’s crude production is improving.
Official figures showed that Nigeria’s crude production averaged 1.72 million barrels per day in the second quarter of 2026, compared with 1.55 million barrels per day in the first quarter.
For households, the consequences of the price hike go beyond the filling station. Petrol is a major component of Nigeria’s transportation and distribution system. Higher prices raise the cost of commuting, increase the expense of transporting agricultural produce and manufactured goods, and push up the operating costs of businesses that depend on petrol-powered generators.
The resulting increases are often passed on to consumers through higher prices for food, transport and other essential goods.
The NLC said the latest increase was a fresh test of whether Nigeria’s petroleum reforms are delivering the economic relief and energy security that Nigerians were promised.
“If Nigeria has the crude and the refining capacity, why are Nigerians still paying increasingly higher prices for petrol?” Upah asked.
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