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Subsidy removal: Current petrol price now above market rate – NLC  

The Nigerian Labour Congress (NLC) has raised concerns over the rising price of petrol in the country, alleging that the current pump price is significantly higher than the actual market value.

In a communique issued on Sunday and signed by its President, Joe Ajero, the NLC accused “fat cats” in the petroleum industry of artificially inflating petrol prices beyond reasonable levels.

Ajero further alleged that this manipulation is at the core of the ongoing disputes between Dangote Refinery and local marketers.

The union also called for the immediate activation of the country’s refineries, including the Port Harcourt and Warri refineries, to address the situation.

What NLC is Saying 

The statement from the organized labour read:

“The NEC-in-session noted with increasing dismay the shenanigans around the appropriate pricing of petrol (PMS) in Nigeria.  

“It observed that there may be a gang-up against Nigerians by fat cats in the industry as the current price of the product is significantly higher than the real market price. Padding of costs and abnormal margins seems to be the order of the day considering the revelations from the ongoing controversy between marketers and the Dangote group.  

“It is entirely possible that Nigerian workers and masses are being ripped off by those who control the levers of economic power in Nigeria, which explains why the domestic public refineries may not immediately be allowed to come on stream. 

“NLC demands appropriate pricing of petrol and calls for the public domestic refineries in Port Harcourt, Warri, and Kaduna to quickly come back on stream to break up the monopolistic stranglehold the big players have on the industry.”  

What you should know  

The gradual increase in fuel prices has followed the removal of subsidies, as the government continues to face challenges in regulating petrol distribution to marketers and filling stations.

The Nigerian National Petroleum Corporation (NNPC) Limited has consistently raised its petrol prices over the past few months, attributing the hikes to market realities.

  • In contrast, some marketers have argued that petrol importation could help lower product prices.
  • However, the Dangote Refinery, which is selling its petrol at prices ranging from N970 to N990, maintains that it is pricing its products based on market conditions.
  • The refinery’s management further stated that any entity selling imported petrol at lower prices is either dealing in dirty fuel or engaging in crude oil theft.
  • Currently, the dispute between Dangote and marketers has escalated to a legal battle, awaiting court resolution.

Source: Naijaonpoint.com.

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