NLC Rejects Petrol Price Hike, Questions Why More Crude Isn’t Reaching Refineries

• Dangote Refinery has raised its petrol gantry price by N100 per litre in eight days, from N1,165 to N1,265.

• Domestic crude supply remains a concern as Dangote accepted 52.6 million barrels in Q2, below its 63 million-barrel requirement.

• Nigeria’s crude production rose to 1.72 million barrels per day in Q2, yet petrol prices continue to climb.

September 02, () — The Nigeria Labour Congress has rejected the latest increase in the price of Premium Motor Spirit, popularly known as petrol, describing it as “avoidable and unacceptable” and questioning why more Nigerian crude is not being made available to domestic refineries.

The acting General Secretary of the NLC, Benson Upah, said the latest increase would further worsen the economic pressure facing workers and low-income households already struggling with high transportation, food and living costs.

“This adds to the increasing difficulties of the average Nigerian for whom life has been Hobbesian,” Upah told our correspondent on Tuesday.

He argued that the increase was difficult to justify given developments in the international oil market and Nigeria’s growing domestic refining capacity.

“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?” he asked.

Dangote Raises Petrol Price Again

The NLC’s reaction followed another increase in the petrol gantry price by Dangote Petroleum Refinery.

The refinery raised its price by N65 per litre on Saturday, from N1,200 to N1,265, just three days after increasing it from N1,185 to N1,200.

It was the third adjustment in eight days. On August 21, the refinery had raised its gantry price from N1,165 to N1,185.

The three increases have cumulatively added N100 per litre to the refinery’s gantry price, representing an 8.6 per cent increase within eight days.

The latest adjustment has also begun to filter through the downstream market, with petrol reportedly selling at around N1,310 per litre in parts of Lagos and Ogun, while prices in some northern locations have risen to N1,350 and above.

Domestic Crude Supply Under Spotlight

The development has revived questions about the availability of Nigerian crude for domestic refineries.

The Dangote Refinery, with a capacity of about 650,000 barrels per day, was expected to reduce Nigeria’s dependence on imported refined petroleum products by processing more locally produced crude.

However, Reuters recently reported that between 30 and 40 percent of the crude processed by the refinery is imported.

Figures from the Nigerian Upstream Petroleum Regulatory Commission also showed that producers offered 68.1 million barrels of crude to Dangote in the second quarter of 2026, against its requirement of 63 million barrels.

However, the refinery accepted only 52.6 million barrels, below its stated requirement.

The figures suggest that the domestic crude supply challenge extends beyond production volumes to issues including pricing, commercial terms, crude quality, logistics and delivery arrangements.

More Crude, Higher Petrol Prices

The supply debate has become more significant as Nigeria’s crude production improves.

Official figures showed that crude production averaged 1.72 million barrels per day in the second quarter of 2026, up from 1.55 million barrels per day in the first quarter.

This presents a growing paradox for consumers: Nigeria is producing more crude, has a 650,000-barrel-per-day refinery and has reduced its dependence on imported petrol, yet pump prices continue to rise.

Higher petrol prices also feed into transportation, food distribution, manufacturing and business operating costs.

For the NLC, the latest increase raises a broader question about whether Nigeria’s crude production and expanding refining capacity are delivering the energy security and price stability expected from the country’s petroleum reforms.

The labour movement is demanding greater attention to domestic crude supply and refinery utilisation, arguing that Nigerians should benefit more directly from the country’s oil resources.