The Nigeria Labour Congress (NLC) has urged the Federal Government to reactivate Nigeria’s other refineries, specifically those in Port Harcourt, Warri, and Kaduna, to counter the inflated prices of Premium Motor Spirit (PMS), commonly known as petrol, imposed by the Dangote refinery.
In a communiqué issued on Sunday following its National Executive Council meeting on Friday, NLC President Joe Ajaero stated that with the Federal Government’s disengagement, the two key players in petrol pricing—Dangote Group and independent marketers—are taking advantage of Nigerians by setting opportunistic prices.
The NLC highlighted that the current petrol prices, ranging from N1,060 to N1,200 per litre, exceed fair market value, pointing to excessive profit margins in the country’s oil and gas sector that are worsening hardship in Nigeria.
“It was observed that there may be a gang-up against Nigerians by fat cats in the industry, as the current price of the product is significantly higher than the real market price,” the statement read.
“Padding of costs and abnormal margins seems to be the order of the day, considering the revelations from the ongoing controversy between marketers and Dangote Group,” the statement reiterated.
“It is entirely possible that Nigerian workers and the masses are being exploited by those who control the levers of economic power in Nigeria, which may explain why domestic public refineries have not been allowed to come on stream,” the statement added.
Moreover, recent data from the Major Oil Marketers Association showed that the landing cost of imported petrol stands at N971 per litre, indicating that imported fuel is cheaper than the locally produced.
Given the cost margin between locally produced and imported fuel, marketers are opting to import petrol to reduce costs.
Investors King gathered that, with more marketers importing petrol, there is a growing demand for loans. Consequently, banks are set to increase funding for petrol importation to N3.5 trillion to ensure adequate resources for marketers.
