Labour and Civil Groups Reject Fuel Price Reduction, Demand Further Cuts
The Nigeria Labour Congress (NLC) and Civil Society Organisations (CSOs) have dismissed the recent reduction in the pump price of Premium Motor Spirit (PMS) to N935 per litre, describing it as insufficient and out of touch with the economic realities faced by Nigerians. The move follows an announcement by Dangote Petroleum Refinery, in partnership with MRS Oil and Gas, to lower prices from over N1,030 per litre in Lagos and N1,060 per litre in Abuja.
Criticism of Current Pricing Framework
Labour leaders have voiced strong dissatisfaction with the reduction, arguing that it does not reflect the true cost of locally refined petrol. Chris Onyeka, a senior official of the NLC, criticised the Federal Government and the Nigerian National Petroleum Company Limited (NNPC), stating that the current pricing system unfairly burdens Nigerians by embedding costs associated with importing fuel.
“Why should we applaud a price of N935/litre when we have local refineries? This pricing framework is built on imported products, despite our domestic refining capacity,” Onyeka said. He demanded clarity on the cost of refining petrol domestically and called for fuel prices to align with local production costs.
Civil Society Voices Discontent
Debo Adeniran, Chairman of the Centre for Accountability and Open Leadership, described the reduction as unsatisfactory, pointing out that other petroleum derivatives could offset costs. “Even at N935, it’s still expensive. If countries like Libya could distribute petrol for free without financial loss, why can’t we do better? The government and private enterprises can go further,” Adeniran said.
Similarly, Ibrahim Rafsanjani, Executive Director of the Civil Society Legislative Advocacy Centre, urged the government to take cues from private firms like Dangote Refinery, which has demonstrated that price reductions are possible while remaining profitable.
Economic Strain on Nigerians
The high cost of fuel has exacerbated economic hardship for many Nigerians, with transport and living costs soaring since the subsidy removal. Although the recent price drop marks the second reduction this month—down from N1,060 to N965 per litre at NNPC stations—it has done little to ease public frustration.
Checks by The Guardian revealed that while some stations, such as MRS outlets, have adopted the N935 price, others, including AA Rano and Mobil, continue to sell petrol at over N1,030, citing older, higher-priced stock.
A Call for Transparency
Labour leaders and CSOs are demanding a breakdown of the production costs for PMS, urging the government to prioritise transparency and fairness in fuel pricing. “This country belongs to all Nigerians. Let the government act in the interest of the people,” Onyeka stressed.
Despite these calls, industry observers note that the Dangote Refinery’s recent partnership with MRS, which has seen the ex-depot price of petrol drop to N899.50 per litre, offers a glimmer of hope for further reductions. However, the labour unions remain firm in their stance that the current pricing system must be overhauled to reflect the realities of local production and ease the burden on the nation’s most vulnerable citizens.
As queues persist at petrol stations across the country, the debate over fuel pricing continues to be a flashpoint in the struggle for economic justice in Nigeria.
