OPS, NLC demand action as petrol hits N1,400/litre

Fuel pump

The Organised Private Sector and the Nigeria Labour Congress on Monday called for urgent government intervention as petrol prices surged towards N1,400 per litre across parts of the country, raising fears of worsening inflation, job losses, and business closures.

The development follows successive price increases by the Dangote Petroleum Refinery, which recently raised its ex-depot price to about N1,275 per litre, marking its fifth hike in March. The price hikes have intensified concerns over pricing dynamics in Nigeria’s deregulated downstream petroleum sector.

Following the last hike over the weekend, petrol prices jumped from N1,240 to nearly N1,400, depending on the location. Reports have it that the petrol prices are higher in the North, while those in Lagos and Ogun still buy at the rates around N1,340.

The surge in petrol prices was triggered by the US-Israel-Iran war in the Middle East. As oil prices rise, the Dangote refinery also hikes fuel prices in Nigeria, fuelling an increase in the cost of living.

From an average of N839 before February 28, a litre of petrol has risen by about N500. Analysts fear that the price could hit N1,500 to N2,000 if the crisis continues with the Strait of Hormuz closed.

Speaking with The PUNCH, stakeholders, in separate interviews, urged the Federal Government to introduce immediate relief measures, including tax incentives for refiners, naira-based crude supply, and temporary subsidies, while accelerating long-term reforms in the energy sector.

However, the regulator and marketers argued that the Federal Government cannot cap petrol prices as done in China, saying the sector is deregulated. Punch