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The Nigerian Labor Congress (NLC) has called on the Federal Government to immediately implement measures to cushion the impact of rising petrol prices, including payment of reasonable wages to workers and sale of crude oil to local refineries in naira.
The NLC, in a statement signed by its President, Joe Ajaero, on Wednesday, said petrol is now selling at about N1,430 per liter in major cities, with prices reportedly higher in hard-to-reach locations.
The labor center warned that rising fuel prices would further exacerbate the economic hardships facing Nigerians, and noted that rising transportation costs typically trigger increases in the prices of food, rent, school fees and other essential goods and services.
In its statement titled “Save the Situation Now,” the NLC said the latest increase comes at a time when government pressure on oil marketers to reduce pump prices in response to low international crude oil prices is starting to bear fruit.
According to the NLC, the latest spike is attributed to the return of conflict in the Gulf, but Nigeria’s status as an oil producing country means the country should be able to provide protection against international oil market shocks.
He said, “As a nation, and as a society blessed with enormous fossil resources, we are entitled to some level of protection or buffer against strong winds from the Gulf, and of course, other strong winds.”
The NLC urges the Federal Government to immediately implement measures to protect households and businesses from the impact of rising fuel prices.
The statement specifically called for fair wages for workers, sufficient sales of naira-denominated crude oil to local refineries, and expansion of national petroleum storage capacity to strengthen energy security and prepare for emergencies.
The union said the measures will not only ease the burden on Nigerians but also create jobs, generate economic value and help address emerging security challenges.
The report also argues that government intervention, including subsidies, should not be ruled out in emergencies.
“There is nothing wrong with the government subsidizing the needs of its citizens, especially in emergency situations like this,” said Ajaero, adding that oil-producing countries are implementing various forms of intervention or palliatives to protect their citizens from the impact of the current global energy crisis.
The NLC further said the Federal Government is benefiting from higher international crude oil prices, claiming that crude oil is currently selling at around $35 to $40 per barrel above the benchmark used in the national budget.
The report argues that additional income should be considered a windfall that can provide fiscal space for interventions aimed at protecting society from rising costs of living.
The union also raised concerns over reports of crude oil imports by some local refineries, and described the construction as contrary to the aim of developing domestic refining capacity.
“In the long term, we share concerns that local refineries are importing crude oil. This is unreasonable and unacceptable and defeats the logic and purpose of local capacity,” the statement said.
The NLC said the government needed to act quickly rather than letting the burden fall entirely on workers and other citizens.
Ajaero said the Federal Government, which he said is seeking re-election in the coming months, “cannot stand by and watch marketers inflict suffering on citizens in the name of deregulation.”
“Workers have an obligation to speak out or act as appropriate,” he added.
