The Nigeria Labour Congress (NLC) on Wednesday, September 16, called for immediate measures to cushion Nigerians from the rising cost of petrol.
NLC president, Joe Ajaero, made the call in a statement titled “Save the Situation Now,” expressing concern over the rising pump price of petrol across the country.
Ajaero said petrol was selling for about N1,430 per litre in some major cities, with prices reportedly higher in less accessible areas.
He warned that rising transport costs would further increase the cost of essential goods and services, including food, school fees, rent and tariffs.
“These new costs continue to inflict or deepen poverty among the populace, stressing the quality of life to the limits,” Ajaero said.
The labour leader said the latest increase had come as the government’s pressure on petroleum marketers to reduce pump prices in line with international crude prices was beginning to produce results.
He attributed the latest surge to the resurgence of conflict in the Gulf but argued that Nigeria’s status as an oil-producing country with local refining capacity should provide some protection against international supply shocks.
Ajaero urged the government to introduce reasonable wage awards for workers, sell sufficient crude oil in naira to domestic refineries and expand national petroleum storage capacity to strengthen the country’s energy security.
According to him, the measures would also create jobs, generate economic value and help address emerging security challenges.
The NLC president called for government intervention to cushion the impact of the price increases, arguing that subsidies or other forms of support could be justified during an emergency.
“There is nothing wrong with government subsidising the needs of citizens, especially in emergency situations like this,” he said.
Ajaero also argued that the federal government had an opportunity to cushion the impact of higher petrol prices because of increased earnings from crude oil sales.
He claimed that Nigeria was currently receiving between $35 and $40 per barrel above the budgeted crude price on the international spot market, which he said translated into trillions of naira in additional monthly revenue.
The NLC president urged the government to consider such additional revenue a windfall that could be used to support citizens during the current period of economic pressure.
On the longer-term supply outlook, Ajaero criticised the continued importation of crude oil by local refineries.
He described the situation as unreasonable and said it undermined the purpose of developing domestic refining capacity.
Ajaero warned that the government could not afford to ignore rising hardship as it approaches the next election cycle, saying labour had a responsibility to speak out and act on issues affecting workers and the wider population.
Comments