The Nigeria Labour Congress (NLC) has condemned the latest increase in the price of Premium Motor Spirit, popularly known as petrol, describing the development as “avoidable and unacceptable.”

The labour union also questioned why the Federal Government had not done more to ensure that the Dangote Petroleum Refinery receives adequate supplies of Nigerian crude oil to support domestic refining.

The acting General Secretary of the NLC, Benson Upah, stated this in an interview with our correspondent on Tuesday while reacting to the latest increase in petrol prices.

Upah warned that the development would further worsen the economic hardship facing ordinary Nigerians, particularly workers and low-income households already struggling with high transportation, food and other living costs.

“This adds to the increasing difficulties of the average Nigerian for whom life has been Hobbesian,” he said.

The NLC leader argued that the latest price adjustment was difficult to justify, particularly against the backdrop of falling international oil prices and Nigeria’s expanding 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?” Upah asked.

The NLC’s reaction followed 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 rising operating costs.

The refinery raised its petrol gantry price by N65 per litre on Saturday, from N1,200 to N1,265 per litre. The adjustment came barely 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 added N100 to the price of petrol at the refinery’s gantry, representing an 8.6 per cent increase within eight days.

The latest increase has begun to reverberate across the downstream market, with petrol prices varying from one location to another as marketers factor transportation, logistics and other distribution costs into their prices.

In parts of Lagos and Ogun, petrol has reportedly sold for about N1,310 per litre, while prices in some northern states and areas farther from the refinery have climbed to N1,350 and above. In some locations, the product is approaching N1,400 per litre.

The development has renewed concerns over the impact of the petrol subsidy removal in 2023, which fundamentally changed Nigeria’s petroleum pricing regime.

Since then, petrol prices have become more exposed to movements in crude oil prices, foreign exchange rates, logistics and other market costs, with successive increases contributing to higher transportation and living expenses.

The latest development has also revived a longstanding question in Nigeria’s petroleum sector: why does a crude-producing country with one of Africa’s largest new refineries continue to experience persistent pressure on petrol prices?

The question has become more prominent following the emergence of the Dangote refinery, which has a refining capacity of about 650,000 barrels of crude oil per day and was expected to reduce Nigeria’s dependence on imported refined petroleum products.

Although the refinery has increased production, securing sufficient quantities of Nigerian crude has remained contentious.

Reuters recently reported 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.

The refinery has repeatedly pushed for greater access to domestic crude at competitive prices as it seeks to increase production, while the crude supply challenge has also featured in official industry data.

Figures 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, against the refinery’s requirement of 63 million barrels.

However, the refinery accepted 52.6 million barrels, meaning the volume actually taken was below both the quantity offered and its stated requirement.

The figures underscore the complexity of the domestic crude supply debate, with the issue extending beyond the volume of crude produced to questions around pricing, commercial terms, quality, transportation and delivery arrangements.

The Federal Government and petroleum regulators have consequently faced growing pressure to reform the framework governing crude supply to domestic refineries.

The debate is significant because the promise of domestic refining was not merely to change where petrol is produced but to create a more resilient petroleum market in which Nigeria’s crude resources are converted into refined products locally.

Such a system is expected to reduce the country’s exposure to international supply disruptions and foreign exchange pressures.

For consumers, however, the benefits of that transition remain difficult to feel as petrol prices continue to rise.

The latest increase also comes as Nigeria’s crude oil production has improved. Official figures showed that the country’s 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.

The development has created a growing paradox: Nigeria is producing more crude, has a refinery capable of processing 650,000 barrels daily and has substantially reduced its reliance on imported petrol, yet consumers remain vulnerable to sharp increases in pump prices.

For households, the consequences extend far beyond the filling station.

Petrol remains a major component of Nigeria’s transportation and distribution system. Higher petrol prices increase commuting costs, raise the expense of transporting agricultural produce and manufactured goods, and increase the operating costs of businesses that rely on petrol-powered generators.

The additional costs are often passed on to consumers through higher prices for food, transportation and other essential goods and services.

This has made every petrol price adjustment a matter of wider economic concern, particularly for workers whose incomes have struggled to keep pace with the rising cost of living.

Against this backdrop, the NLC has challenged the government to ensure that Nigeria’s crude resources are better deployed to support domestic refining and reduce pressure on consumers.

Upah’s intervention has also placed renewed attention on the government’s responsibility to ensure that the benefits of increased crude production and expanded domestic refining capacity extend beyond refiners and other industry players to ordinary Nigerians.

While market forces remain important in determining petrol prices under the post-subsidy regime, the labour movement maintains that government can still influence structural factors driving costs, particularly crude supply arrangements, refinery utilisation and domestic energy policy.

For the NLC, the latest petrol price increase is therefore more than another adjustment at the pump. It is a fresh test of whether Nigeria’s petroleum reforms are delivering the economic relief and energy security promised to Nigerians.

As motorists, workers and businesses brace for the impact of the latest increase, the labour movement is demanding an answer to a fundamental question: If Nigeria has the crude and the refining capacity, why are Nigerians still paying increasingly higher prices for petrol?