The Nigeria Labour Congress (NLC) has criticised the latest increase in the price of Premium Motor Spirit (PMS), commonly known as petrol, describing the adjustment as “avoidable and unacceptable.”
The labour union also questioned why the Federal Government has not done more to ensure that the Dangote Petroleum Refinery has sufficient access to locally produced crude oil.
NLC Acting General Secretary, Benson Upah, made the remarks in an interview with our correspondent on Tuesday while responding to the latest petrol price increase.
Upah warned that the higher pump price would add to the economic pressure on Nigerians, particularly workers and low-income families already facing rising transportation, food and other living expenses.
He said, “This adds to the increasing difficulties of the average Nigerian for whom life has been Hobbesian.”
The labour leader said the latest increase was difficult to defend, especially given the recent movement in international crude oil prices and Nigeria’s expanding 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 position followed another increase in the price of petrol by the Dangote Petroleum Refinery, raising fresh concerns among motorists, transport operators and businesses already dealing with elevated operating costs.
The refinery increased its petrol gantry price by N65 per litre on Saturday, from N1,200 to N1,265. The adjustment came just three days after the refinery had raised the price from N1,185 to N1,200 per litre.
It marked the refinery’s third petrol price adjustment in eight days. On August 21, the company increased its gantry price from N1,165 to N1,185 per litre. Altogether, the three adjustments have added N100 to the refinery’s gantry price, representing an 8.6 per cent increase within eight days.
The latest increase has also affected the wider downstream market, with petrol prices differing across locations as marketers factor transportation, logistics and distribution expenses into their selling prices.
In parts of Lagos and Ogun, petrol has reportedly risen to around N1,310 per litre, while some northern states and areas farther from the refinery have recorded prices of N1,350 or more. In some locations, the product is nearing N1,400 per litre.
The latest price increase comes as many Nigerians continue to deal with the economic effects of the petrol subsidy removal in 2023.
The removal changed Nigeria’s petroleum pricing system, leaving consumers more exposed to crude oil prices, foreign exchange movements and other market-related costs. Since then, petrol prices have undergone several adjustments, with each increase contributing to higher transportation costs and the prices of essential goods and services.
Crude Supply Becomes Key Concern
The development has once again raised a longstanding question in Nigeria’s petroleum industry: why does a major crude oil-producing country with a large new refinery continue to experience pressure on petrol prices?
The question has gained greater attention following the emergence of the Dangote refinery, which has the capacity to process approximately 650,000 barrels of crude oil per day. The facility was expected to help reduce Nigeria’s reliance on imported refined petroleum products.
However, despite increased production at the refinery, access to sufficient quantities of Nigerian crude remains a contentious issue.
Reuters recently reported that between 30 and 40 per cent of the crude processed by the Dangote refinery is imported, despite Nigeria’s position as a major crude oil producer. The refinery has continued to seek greater access to locally produced crude at competitive prices as it works to increase output.
Official industry figures have also highlighted the challenges surrounding domestic crude supply.
Data from the Nigerian Upstream Petroleum Regulatory Commission showed that oil producers offered 68.1 million barrels of crude to the Dangote Refinery in the second quarter of 2026, compared with the refinery’s requirement of 63 million barrels. However, the refinery accepted 52.6 million barrels, leaving the actual volume supplied below both the amount offered and the refinery’s stated requirement.
The figures suggest that the domestic crude supply challenge goes beyond the volume of crude available. Issues including pricing, commercial agreements, crude quality, transportation and delivery arrangements also play a role.
Consequently, the Federal Government and petroleum regulators have faced growing calls to review the framework governing crude oil supplies to domestic refineries.
The issue is particularly significant because the goal of expanding domestic refining is not merely to produce petrol locally. It is also intended to create a more stable petroleum market in which Nigeria’s crude resources can be processed domestically, reducing exposure to international supply disruptions and foreign exchange pressures.
For consumers, however, the expected benefits remain difficult to see as petrol prices continue to rise.
Nigeria Produces More Crude, But Petrol Prices Rise
The latest petrol increase also comes amid an improvement in Nigeria’s crude oil production. Official figures showed that average crude production rose to 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 has intensified the apparent contradiction in Nigeria’s petroleum sector: the country is producing more crude, has a refinery capable of processing 650,000 barrels daily and has reduced its dependence on imported petrol, yet consumers remain exposed to significant petrol price increases.
The impact extends well beyond filling stations. Petrol plays a major role in Nigeria’s transportation and distribution networks. Higher fuel costs increase commuting expenses, raise the cost of moving agricultural and manufactured products, and add to the operating expenses of businesses that rely on petrol-powered generators.
Businesses often pass these additional costs on to consumers, resulting in higher prices for food, transportation and other essential goods. This makes every petrol price adjustment a broader economic issue, especially for workers whose earnings have struggled to keep pace with rising living costs.
Against this backdrop, the NLC is challenging the government to explain the latest petrol increase and take steps to ensure that Nigeria’s crude resources are used more effectively to support domestic refining.
Upah’s comments have also renewed attention on the government’s role in ensuring that the benefits of increased crude production and expanded refining capacity reach ordinary Nigerians, rather than remaining concentrated within the petroleum industry.
Although market forces continue to influence petrol prices under the post-subsidy regime, the labour movement maintains that the government can still address some of the structural factors driving costs, including crude supply arrangements, refinery utilisation and domestic energy policies.
For the NLC, the latest petrol price increase represents more than another adjustment at the pump. It is also a test of whether Nigeria’s petroleum reforms are delivering the promised economic relief and greater energy security.
As motorists, households and businesses prepare for the impact of higher fuel costs, the central question remains: if Nigeria has both the crude and the refining capacity, why are Nigerians still paying more for petrol?
