Reported by: Ijeoma G | Edited by: Oravbiere Osayomore Promise.
The Nigeria Labour Congress has rejected the latest increase in the price of Premium Motor Spirit, describing it as "avoidable and unacceptable" and questioning why the Federal Government has not done more to ensure that the Dangote Petroleum Refinery receives adequate supplies of Nigerian crude. The acting General Secretary of the NLC, Benson Upah, stated this in an interview on Tuesday, September 1, 2026, while reacting to the latest adjustment in petrol prices.
The Dangote Petroleum Refinery raised its petrol gantry price by N65 per litre on Saturday, August 29, 2026, moving it from N1,200 to N1,265 per litre. The latest adjustment came only three days after the company increased the price from N1,185 to N1,200 per litre. It was the third price adjustment by the refinery in eight days. On August 21, the company had raised its gantry price from N1,165 to N1,185 per litre. In all, the three adjustments have added N100 to the price of petrol at the refinery's gantry, representing an 8.6 per cent increase within just eight days. The price hikes have since affected retail prices across the country, with petrol selling between N1,310 and N1,400 per litre, depending on location.
Upah warned that the development would further compound the economic difficulties confronting ordinary Nigerians, particularly workers and low-income households already struggling with high transportation, food and other living costs. He said, "This adds to the increasing difficulties of the average Nigerian for whom life has been Hobbesian". The labour leader argued that the latest increase was difficult to justify, particularly against the backdrop of developments in the international oil market and Nigeria's growing domestic refining capacity. According to him, "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?".
The NLC's reaction came against the backdrop of another increase in the price of petrol by the Dangote Petroleum Refinery, which has triggered fresh concerns among motorists, transport operators and businesses already grappling with high operating costs. The renewed price increase is coming at a particularly sensitive time for Nigerians, many of whom are still struggling with the impact of the removal of the petrol subsidy in 2023. The subsidy removal fundamentally altered the petroleum pricing regime, exposing consumers to movements in crude oil prices, foreign exchange rates and other market costs.
The latest development has also revived an old but unresolved question in Nigeria's petroleum sector: why does a crude-producing country with a major new refinery still face persistent pressure on petrol prices? The question has become more prominent with the emergence of the Dangote refinery, which has a capacity to process about 650,000 barrels of crude oil daily and was expected to reduce Nigeria's dependence on imported refined petroleum products. But while the refinery has ramped up production, securing adequate quantities of Nigerian crude has remained a contentious issue. Reuters reported recently that between 30 and 40 per cent of the crude processed by the Dangote refinery is imported, despite Nigeria being a major crude oil producer.
Data from the Nigerian Upstream Petroleum Regulatory Commission showed that while oil producers offered 68.1 million barrels of crude to Dangote Refinery in the second quarter of 2026, the refinery accepted only 52.6 million barrels—below both the amount offered and its stated requirement of 63 million barrels. The figures point to ongoing challenges in the domestic crude supply framework, including pricing, commercial terms, and delivery arrangements. The NLC argued that Nigeria, as a major crude producer with a 650,000-barrel-per-day refinery, should not be experiencing such sharp increases in petrol prices. The labour congress also questioned why the government has not done more to ensure that the Dangote refinery receives adequate supplies of Nigerian crude, particularly at a time when the country's crude production is improving. Official figures showed that Nigeria's crude production averaged 1.72 million barrels per day in the second quarter of 2026, compared with 1.55 million barrels per day in the first quarter.
For households, the consequences of the price hike go beyond the filling station. Petrol is a major component of Nigeria's transportation and distribution system. Higher prices raise the cost of commuting, increase the expense of transporting agricultural produce and manufactured goods, and push up the operating costs of businesses that depend on petrol-powered generators. The resulting increases are often passed on to consumers through higher prices for goods and services. The NLC warned that continued price increases would undermine the benefits of domestic refining and called on the government to address the structural issues affecting crude supply to local refineries.
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