The Nigeria Labour Congress (NLC) and the Organised Private Sector have called for the urgent rollback of recent fuel price increases implemented by the Nigerian National Petroleum Company Limited (NNPCL).
The price of Premium Motor Spirit (PMS), commonly known as petrol, has surged to N1,030 per litre in Abuja, up from N897, and to N998 in Lagos from N868. This second price increase within a month has sparked widespread frustration among Nigerians.
The latest adjustment, representing a 14.8% increase of N133, marks a staggering rise of over 430% since the current administration took office in May 2023. Just last month, NNPC raised the pump price to N897 per litre from an official rate of N617.
This price hike follows the NNPC’s announcement of financial difficulties, including a substantial debt of $6.8 billion owed to international suppliers. At a fuel station in Central Area, Abuja, a frustrated customer reported being unaware of the price increase until after waiting in line. “I was shocked when I learned the price had risen to N1,030,” he expressed.
The situation has worsened with some stations in Abuja reportedly charging as high as N1,200 per litre. In various regions, prices have escalated, with reports of petrol selling for N1,300 in some areas. Consequently, drivers have started raising transportation fares, with a one-way trip from Lugbe to Wuse increasing from N700 to N1,000.
The NLC condemned the price hike, labeling it an aberration and criticized the government for its focus on fuel price increases without addressing broader economic issues. NLC President Joe Ajaero emphasized the negative impact on the livelihoods of Nigerians, stating that the increase could exacerbate poverty and job losses.
The Organised Private Sector echoed these concerns, with the Director-General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, warning that the hike would inflate production costs for manufacturers, ultimately impacting consumer prices.
Dr. Muda Yusuf, Director of the Centre for Promotion of Private Enterprise, described the timing of the price increase as ill-considered, suggesting that the government should prioritize measures to alleviate economic hardship rather than exacerbate it. He advocated for a more gradual approach to deregulation and urged for legislative changes to support economic stability.
As the situation unfolds, both the NLC and the Organised Private Sector are pressing for immediate government action to reverse the price hike and provide a clearer economic strategy for Nigerians.
