NLC Criticizes Recent Petrol Price Hike
The Nigeria Labour Congress (NLC) has criticized the recent petrol price hike, calling it insensitive and a blatant disregard for the public’s struggles with poverty.
Price Surge and Immediate Impact
NLC President, Comrade Joe Ajaero, expressed his strong disapproval of the government’s actions, viewing them as a continuation of a disturbing trend that worsens the difficulties faced by ordinary Nigerians. This statement was made in a press release on Wednesday, following the announcement that the Nigerian National Petroleum Company Limited (NNPCL) had raised petrol pump prices to N998 in Lagos and N1,030 in other areas.
Immediately after the price increase, long fuel queues appeared across Lagos, and many filling stations, particularly along Ikorodu Road, Ikeja, and Bariga, temporarily closed their doors due to the hikes.
Economic Strain on Nigerians
On that day, fuel prices surged at pumps throughout Nigeria, further straining citizens already grappling with the worst economic crisis in decades. The NNPCL has yet to comment on the sudden increase, which ranges between 15% and 20% across the country.
This is the second price hike in just over a month; in early September, the NNPCL acknowledged significant debts to fuel suppliers while announcing a nearly 40% price increase to stabilize its financial situation.
Increasing Challenges Amid Economic Reforms
Amid soaring inflation, rising food prices, and a struggling naira, Wednesday’s price hike significantly affects Nigerian households, adding to the economic burden as President Bola Ahmed Tinubu’s government implements reforms designed to revitalize the economy of Africa’s most populous country.
Public Sentiment and Rising Discontent
“It’s affecting everyone,” stated Ohaka Amaechi, a 56-year-old police driver waiting for fuel at an NNPCL station in Lagos. “The pricing is tough, but we have no choice. People are fighting to make ends meet.”
Rising Pump Prices Across the Country
At that particular station, the price surged from 855 to 998 naira per litre (0.53to0.53to0.62), with prices exceeding 1,000 naira in some locations, including the capital, Abuja, and the northern city of Kano. Private suppliers are already charging even higher prices.
Repercussions of Economic Reforms
Since taking office last year, President Tinubu has claimed that his reforms would foster economic recovery and attract foreign investment. However, inflation has reached a three-decade high since the president ended the fuel subsidy and allowed the naira to float.
Concern Over Government Policies
Ajaero expressed his disappointment with the latest petrol price hike, highlighting the government’s recurring pattern of raising prices without adequate support for the people. He remarked, “It seems the only approach this government knows is to increase petrol prices without providing the necessary capacity for Nigerians or any mitigating measures.”
Warning About Poverty and Economic Consequences
Ajaero emphasized the profound effects of the most recent price hike, pointing out that “this latest increase has drastically altered the financial calculations for Nigerians at a time when they were beginning to adjust to their new realities.” He warned that such decisions would exacerbate poverty, stating, “This will further deepen poverty as production capacity declines and more jobs are lost, leading to multiple adverse effects.”
A Call for Immediate Action
Given these issues, Ajaero called for an immediate reversal of the price hike, insisting that past increases have not had a positive impact and have only resulted in greater hardship for the population. He concluded by emphasizing the importance of transparency, urging the government to clearly communicate its plans for the country’s future amid ongoing economic challenges.
Government’s Response to the Price Hike
According to a report by Oriental News Nigeria, Minister of Information and National Orientation, Mohammed Idris, stated that the government should not be held accountable for the latest petrol price increase. He explained that the NNPCL made the adjustment based on current conditions in the energy sector and noted that the government is no longer in a position to regulate petrol prices under the provisions of the Petroleum Industry Act (PIA).
Economic Factors Behind Price Variations
He added that since the subsidy regime ended in May 2023, the NNPCL had been covering price differentials to maintain stability but could no longer sustain these losses. “The price variations you are seeing stem from several factors, including the crisis in the Middle East and overall market volatility. Therefore, the cost of petroleum products is rising, consistent with trends observed in the global industry. Moreover, as a limited liability company, NNPC cannot continue absorbing these losses,” he stated.
A Call for Patience and Assurance
The minister urged Nigerians to remain patient and understanding towards NNPCL and the government, assuring them that prices would eventually decrease in the long run.