Amanze Chinonye
The Nigeria Labour Congress (NLC) has rejected the latest increase in petrol prices, describing it as “avoidable and unacceptable” and questioning why the Federal Government has not ensured greater supplies of Nigerian crude to the Dangote Petroleum Refinery, Prime Business Africa reports.
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The labour union’s criticism followed three price adjustments by the refinery within eight days, which raised its petrol gantry price by a combined ₦100 per litre, about 8.6%, adding fresh pressure on households and businesses facing high transportation and living costs.
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Acting NLC General Secretary Benson Upah said the latest increase would further worsen the economic difficulties confronting ordinary Nigerians.
“This adds to the increasing difficulties of the average Nigerian for whom life has been Hobbesian,” Upah said.
“The latest increase is avoidable and unacceptable in light of falling prices in the international market and our local capacity to sell more crude oil to Dangote. Why are we not doing so?”
Dangote Refinery on Saturday raised its petrol gantry price by ₦65 per litre to ₦1,265 from ₦1,200. The increase followed an adjustment from ₦1,185 to ₦1,200 three days earlier.
On Aug. 21, the refinery had raised its gantry price from ₦1,165 to ₦1,185 per litre.
The higher wholesale price has begun to filter through to filling stations, with retail prices varying across the country as marketers account for transportation, logistics and distribution costs.
Petrol has been reported at about ₦1,310 per litre in parts of Lagos and Ogun states, while prices in some northern states and locations farther from the refinery have risen to ₦1,350 or more. In some markets, prices are approaching ₦1,400 per litre.
The latest adjustment comes more than three years after the Federal Government removed the petrol subsidy in 2023, exposing consumers more directly to fluctuations in crude oil prices, foreign exchange movements and other market costs.
Higher fuel prices have since contributed to increased transportation and distribution costs, with the effects often passed on to consumers through higher prices for food, goods and services.
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The NLC’s intervention has also renewed attention on the supply of crude to domestic refineries.
The Dangote refinery, which can process about 650,000 barrels of crude per day, was expected to reduce Nigeria’s dependence on imported refined petroleum products. Securing sufficient crude from domestic producers, however, has remained a challenge.
Reuters recently reported that between 30% and 40% of the crude processed by the refinery is imported, despite Nigeria being one of Africa’s largest oil producers.
Data from the Nigerian Upstream Petroleum Regulatory Commission showed that producers offered 68.1 million barrels of crude to Dangote Refinery in the second quarter of 2026, compared with the refinery’s stated requirement of 63 million barrels. The refinery accepted 52.6 million barrels.
The figures highlight the complexity of the domestic crude supply debate, which extends beyond crude availability to issues including pricing, commercial terms, crude quality and delivery arrangements.
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Dangote has maintained that petrol prices do not necessarily track daily movements in international crude prices because products being sold at a given time may have been refined from crude purchased weeks or months earlier.
Freight, logistics, storage and financing costs can also affect the final price of refined products, meaning a fall in international crude prices may not immediately result in lower petrol prices.
Nigeria’s crude production has nevertheless increased, averaging 1.72 million barrels per day in the second quarter of 2026, compared with 1.55 million barrels per day in the first quarter.
The latest price increase has therefore sharpened questions over whether higher crude production and expanding domestic refining capacity will ultimately translate into more stable and affordable fuel prices for Nigerian consumers.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
