Business
NLC Accuses Dangote And Marketers Of Inflating Fuel Prices
The Nigeria Labour Congress (NLC) has raised serious concerns, accusing Dangote Group and oil marketers of manipulating Premium Motor Spirit (petrol) prices to profit at the expense of Nigerians.
This was disclosed in a statement released on Sunday following the NLC’s National Executive Council (NEC) meeting on Friday.
In the statement, the NLC mentioned the current retail prices of petrol—ranging from N1,060 to N1,200 per litre—which they argue are far above the actual market value.
According to the union, this price disparity is a strong indication of inflated costs and excessive profit margins within Nigeria’s oil and gas sector, with these practices unfairly burdening consumers.
The NLC expresses concerns that key players in the industry might be colluding to control petrol prices, making it harder for Nigerians to afford basic fuel needs.
They noted that despite the supposed liberalization of the market, prices remain significantly high.
This led the NLC to call on the Nigerian government to urgently bring the Port Harcourt refinery and other state-owned refineries into operation to introduce more competition and relieve the grip that private players currently hold on fuel pricing.
During the NEC meeting, union leaders voiced their dissatisfaction, accusing “big players” in the industry of maintaining high prices through cost padding and inflated profit margins.
This alleged profiteering, according to the NLC, is adding to the economic strain on Nigerians, with workers and ordinary citizens bearing the brunt of the artificially high fuel prices.
The NLC also pointed out that this might be the reason why public refineries, including those in Port Harcourt, Warri, and Kaduna, are yet to return to full operation, despite their potential to ease fuel prices in the domestic market.
In recent days, a disagreement between Dangote Refinery and petroleum marketers has come into the spotlight, reflecting deeper issues in the sector.
Dangote Group announced that their petrol is available at ex-depot prices between N960 and N990 per litre, yet other marketers claim that imported fuel is still cheaper than what Dangote supplies.
Marketers have insisted that their imported petrol remains more affordable, countering Dangote’s claims.
In turn, Dangote Refinery has suggested that some marketers may be importing lower-quality, cheaper petrol, which the marketers have denied.
Adding to the discussion, recent figures from the Major Energies Marketers Association indicate that the landing cost for imported petrol currently stands at N971 per litre.
The NLC is pushing for a fairer pricing structure, stating that this will only be achieved by breaking the market’s current monopolistic structure.
They emphasized that reopening government-owned refineries is key to balancing market forces and potentially driving down fuel prices.
Pastor Enoch Adeboye, the General Overseer of the Redeemed Christian Church of God, recently shared his concerns about a purported conspiracy involving an oil cabal in Nigeria, working in collusion with international oil companies (IOCs) to undermine the operations of private refineries, particularly the Dangote Petroleum Refinery.
Speaking at the November 2024 Abuja Special Holy Ghost service, Adeboye called on Nigerians to pray for divine intervention,
He believes that these unscrupulous oil marketers are intentionally working to create difficulties for the public, especially in light of their efforts to hinder the operations of the Dangote refinery.
Adeboye pointed out that Dangote’s refinery came as a response to the failure of the public refineries and the ongoing struggle Nigeria faces in trying to refine its own crude oil.
Despite being one of the world’s largest oil producers, Nigeria continues to rely heavily on importing refined petrol, a situation that has sparked frustration and concern among citizens.
“Are we under a curse?” Adeboye questioned, highlighting the irony that the country with vast oil reserves struggles to refine its own products.
He further praised Dangote for his determination to help alleviate the suffering of Nigerians.
“He is not my relative, not even from my village, and not a Christian. But as a Nigerian, he saw the suffering of the people and decided to build a refinery that could work,” Adeboye remarked.
In a positive development for Dangote Refinery, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has reached an agreement to buy petrol directly from the refinery, bypassing the usual importation channels.
However, Nigerians are still facing high fuel prices, with petrol being sold for as much as N1060 to N1200 at various NNPC stations and other retail outlets across the country, leaving many questioning when the country will truly see the benefits of its oil wealth.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) recently revealed that Premium Motor Spirit (petrol) will become more affordable for Nigerians, with a planned price reduction of N50 per liter.
This announcement came from IPMAN’s National President, Abubakar Maigandi, during a Tuesday interview with Channels Television.
Maigandi disclosed that the price cut follows a recent agreement between IPMAN and Dangote Refinery, which will now directly supply petrol to IPMAN members at a lower rate.
Under the new agreement, Dangote Refinery will sell petrol to IPMAN members at N940 per liter for depot purchases and N990 per liter for trucks.
With these adjusted rates, independent marketers who have been selling petrol for as high as N1,200 per liter in locations like Maiduguri will now be able to drop their prices to around N1,150 or potentially even lower.
Maigandi mentioned that the adjustment depends on location, as transport and logistics costs can vary, but he expects to see the benefits reach customers soon.
Maigandi also shared some insight into the new purchasing arrangements.
IPMAN members have two main options: they can either transport fuel directly from the Dangote Refinery to their depots or purchase it directly for trucks.
These measures are expected to streamline the distribution process, reducing dependence on the Nigerian National Petroleum Company Limited (NNPCL) as the primary distributor of Dangote’s petrol.
Currently, Nigerians are paying between N1,060 and N1,200 per liter at NNPCL outlets and other stations, so the new pricing arrangement with IPMAN is a welcome move for the average consumer facing high fuel costs.
Bitcoin nears $90,000 as investors are positive about the crypto-friendly U.S under President Trump’s Administration. Since the conclusion of the US election, cryptocurrency has risen over 30% reaching a new record of $89,637 on Tuesday.
Investors now expect more increase with Trump accepting crypto and wanting to create a new policy. During his first term people called Trump a ‘scam’ for believing in crypto, now investors await his plan with optimism.
However Bitcoin and other cryptocurrencies are not fixed and are known for experiencing fluctuation in prices.
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