NLC Rejects Petrol Price Increase, Demands More Crude for Domestic Refineries

The Nigeria Labour Congress (NLC) has rejected the latest increase in petrol prices, describing the hike as “avoidable and unacceptable.”

The labour union also questioned why the Federal Government has not ensured that the Dangote Petroleum Refinery receives sufficient supplies of Nigerian crude oil.

NLC Acting General Secretary, Benson Upah, said the latest increase would worsen the economic difficulties facing ordinary Nigerians, particularly workers and low-income households already struggling with rising transportation, food and other living costs.

Upah argued that the price increase was difficult to justify given falling international oil prices and Nigeria’s growing domestic refining capacity.

The Dangote Petroleum Refinery recently increased its petrol gantry price by N65 per litre, from N1,200 to N1,265. The latest adjustment came just three days after the refinery raised the price from N1,185 to N1,200 per litre.

It was the refinery’s third price increase in eight days. Since August 21, the petrol price at the gantry has risen by N100, representing an increase of about 8.6 per cent.

The higher refinery price has begun to affect the wider downstream market, with petrol prices varying across the country because of transportation, logistics and distribution costs. In some parts of Lagos and Ogun, petrol is reportedly selling for around N1,310 per litre, while prices in some northern states have risen to N1,350 or more.

The latest increase has renewed concerns over the impact of petrol prices on Nigerian households and businesses, particularly following the removal of the fuel subsidy in 2023.

The NLC said the situation raises questions about why Nigeria, a major crude oil producer with a refinery capable of processing about 650,000 barrels of crude daily, continues to face pressure from rising petrol prices.

According to industry figures, producers offered 68.1 million barrels of crude to the Dangote refinery during the second quarter of 2026, compared with the refinery’s requirement of 63 million barrels. However, the refinery reportedly accepted only 52.6 million barrels.

The figures have intensified debate over domestic crude supply, including issues surrounding pricing, commercial terms, crude quality, transportation and delivery arrangements.

Meanwhile, Nigeria’s crude production has continued to improve. Official figures showed that average crude production increased to 1.72 million barrels per day in the second quarter of 2026, up from 1.55 million barrels per day in the first quarter.

The NLC is therefore calling on the Federal Government to make better use of Nigeria’s crude resources to support domestic refining and reduce pressure on consumers.

The union argues that increased crude production and expanded refining capacity should ultimately translate into lower costs and greater energy security for Nigerians.

With petrol prices continuing to rise, the latest development has once again raised concerns about whether Nigeria’s petroleum reforms are delivering the economic relief promised to citizens.

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