The President of the Nigeria Labour Congress (NLC), Joe Ajaero, has described the involvement of the President Bola Tinubu-led government in deciding the price of petrol produced by Dangote Refinery as fraud.

Ajaero spoke during a media briefing at the Murtala Muhammed Airport in Lagos on Wednesday.

According to him, the inconsistencies in policies and fraudulent actions of the Tinubu-led administration are the cause of the ongoing conflict between the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery.

The NLC President criticised the current administration for attempting to interfere with the operations of private entities like Dangote.

He countered the government’s attempt to dictate the price of petrol produced by Dangote, describing it as fraudulent.

Ajaero said: “In a truly deregulated market, there should be no interference in how private sector entities like Dangote operate. Imposing restrictions or dictating prices goes against the principles of a free market.

“For a locally produced product, with no reliance on imported dollars or landing costs, they’re demanding he sells it at the same price as the imported ones. That’s both fraudulent and unacceptable.

“What you’re witnessing is a mix of fraud and policy inconsistency. Nigerians were led to believe that the sector had been deregulated, and in a deregulated market, competition and choice should prevail. So why is there now an attempt to control how much Dangote should sell his product for?

“When the Port Harcourt refinery becomes operational, both NNPC and Dangote should be able to sell freely. But trying to dictate Dangote’s pricing is dishonest.

“This is the time for Nigerians to speak out. We were told that deregulation would put the private sector in charge and limit government interference in business. Now, the government is trying to regulate how private businesses should price their products.

“They expect him to sell at the same price as the imported product, even though it was produced locally without the additional landing costs. That’s outright fraud.”

Crude gained on Tuesday following Hurricane Francine disruption in the U.S. and the possibility of an interest rate cut in the U.S.

These two factors have boosted traders’ sentiment in the oil market despite concerns about global demand and slowing growth in China.

Brent crude oil, against which Nigerian oil is priced, rose by 36 cents, or 0.5% to $73.11 per barrel while the U.S. crude oil gained 53 cents, or 0.8% to settle $70.62 per barrel.

Both closed higher in the previous trading session as the market reacted to the impact of Hurricane Francine on U.S. Gulf Coast production.

More than 12% of crude oil production and 16% of natural gas output in the Gulf of Mexico remained offline as of Monday, according to the U.S.

According to the Bureau of Safety and Environmental Enforcement (BSEE), the disruption has raised concerns over short-term supply shortages and contribution to the upward momentum in prices.

Yeap Jun Rong, a market strategist at IG said “while the market is seeing near-term stabilization, the fragile state of China’s economy and anticipation of the U.S. Federal Reserve’s interest rate decision could limit further gains.”

The Federal Open Market Committee (FOMC) is expected to announce a rate cut later this week, with futures markets pricing in a 69% chance of a 50-basis-point reduction.

Lower interest rates are favourable for oil prices as they reduce borrowing costs and encourage economic growth.

“Growing expectations of an aggressive rate cut are lifting sentiment across the commodities sector”, stated ANZ analysts.

The market, however, remains cautious due to lower-than-expected demand from China, the world’s largest importer of the commodity.

Chinese data released over the weekend showed that China’s oil refinery output dropped for the fifth consecutive month in August. This signals weaker domestic demand and declining export margins.