More organisations and individuals have warned about the severe impact of the latest fuel price increase on businesses and households.
On Tuesday, the Nigeria Labour Congress (NLC) called for an outright reversal of the full price increase, blaming the president for reneging on a pact agreed to between the government and Labour during the national minimum wage negotiation during which Labour accepted a reduced minimum wage figure of N70,000 in return for retaining the price of fuel.
Yesterday, the Trade Union Congress (TUC) and the Manufacturing Association of Nigeria (MAN) spoke in a similar vein, saying the increment will have a drastic impact on Nigerian workers and businesses.
In voicing its opposition to the latest increase in the price of petrol, the TUC described the hike as a significant burden that permeates every aspect of the nation's socio-economic life, particularly as it will impact the working class, who are already facing severe economic hardships.
In a statement issued yesterday in Abuja, TUC President Comrade Festus Osifo criticised the government's decision to implement the PMS price hike without consulting key stakeholders.
He labelled the move as a blatant disregard for the welfare of the Nigerian people while noting that it had sparked widespread apprehension and depression across the country.
The TUC also raised concerns about a 250% hike in electricity tariffs, which it described as another blow to the poorest Nigerians relying on this essential service.
Fuel Price Hike: Nigerian Students To Shut Down Major Cities With Nationwide Protests
The union condemned the timing and magnitude of these increases, especially in the absence of meaningful social security measures, which, they argue, showed a lack of empathy and understanding from those in power.
Osifo questioned the government's failure to reduce the cost of governance or implement policies that would strengthen the naira and improve living standards.
Part of the statement reads, "The Trade Union Congress of Nigeria (TUC) received the news of PMS price hike with great contestation and grave concern.
"The burden of the PMS price increase is huge and percolates every facet of our socioeconomic life. This sudden hike, implemented without consultation with critical stakeholders, represents a blatant disregard for the welfare of the Nigerian people, particularly the working class, who bear the brunt of such decisions.
"Why does it have to be the common Nigerians bearing all the pains of the high cost of living while those in power enjoy increased allocation and affluence?"
According to him, the sudden hike in fuel and electricity costs will only exacerbate these challenges, leading to further hardship and potential social unrest.
"We urge the government to rescind these decisions immediately, promote policies that strengthen the naira, and take decisive steps to alleviate the suffering of Nigerians," he said.
On its part, the Manufacturers Association of Nigeria (MAN) warned of a possible escalation in the prices of goods and services following the upward adjustment of the price of petrol by the federal government.
Business owners have advocated a more sustainable approach due to the negative impact of the fuel pump price hike.
The Nigerian National Petroleum Company Limited (NNPC) raised the pump price of petrol from N617 to N897 per litre at its retail outlets in Abuja, N855 in Lagos, and over N1,000 in other parts of the country on September 3.
Also, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced that the Dangote Refinery will supply 30 million litres of petrol daily to the domestic market by October.
Reacting to the hike, director general of the MAN, Segun Ajayi-Kadir, expressed worry over the impact on the already lackluster performance of the manufacturing sector.
He said that, in particular, it will undoubtedly add to production input and logistics costs, which will lead to higher prices in the face of the average Nigerian's dwindling disposable income.
The DG further said that deeper consumer demand will increase manufacturers' unplanned inventory and reduce capacity utilisation.
According to him, manufacturing performance would be negatively impacted, and businesses may need to adjust their pricing strategies. If consumer demand weakens, this could lead to reduced profit margins. Small and medium-sized enterprises (SMEs), which often operate on thin margins, could be particularly hard-hit.
He warned that the increased costs could force some to scale down operations or even shut down if they are unable to pass on the additional costs to consumers.
According to him, the recent increase in the price of petrol from about ₦568 per litre to ₦855 per litre implemented across NNPC filling stations had expectedly attracted many comments nationwide.
"From what I can glean, the reasons for the increase are not far-fetched. Globally, there is an increase in crude oil prices. Our refineries are not producing fuel, and we import fuel. The increase in the cost of crude oil will directly impact the cost of importing fuel into Nigeria, and expectedly, the NNPC will adjust domestic prices at some point.
"Also, right from the time fuel subsidy was either reduced or removed, it became inevitable that the price may rise. You will also note the sharp decline in the value of the Naira and the impact it is bound to have on fuel importation."
Meanwhile, the NMDPRA, which regulates the mid- and downstream sectors of the country's oil and gas industry, also said that Dangote refinery is now poised to supply an initial 25 million litres of PMS into the domestic market this September
The $20 billion refinery, which has a capacity of 650,000 barrels per day, is expected to increase this supply to 30 million litres daily by October.
The announcement was made in a post on X (formerly known as Twitter) by the NMDPRA.
The regulatory authority disclosed that during a meeting held in Abuja on Tuesday, the NMDPRA and the Nigerian National Petroleum Company Limited (NNPCL) reached an agreement to commence the sale and supply of crude oil to the Dangote Refinery in local currency.
"The refinery is now poised to supply an initial 25 million litres of PMS into the domestic market this September," the NMDPRA stated.
Save Nigeria, Reverse Fuel Price Hike, PDP Tells Tinubu
The Peoples Democratic Party (PDP) has called on President Bola Tinubu to save the country from further socio-economic dislocation by immediately reversing the latest provocative increase in fuel prices and revisiting all the suffocating policies of the All Progressives Congress (APC) government.
The party stated this while condemning the increase in the pump price of fuel to over N1,000 per litre in various parts of the country, which it described as a brutal assault on the sensibility and well-being of Nigerians by the APC administration.
The opposition party said the thoughtless increase in fuel prices, especially at this time, is a huge recipe for crisis as Nigerians cannot bear its worsening effect on the suffocating economic hardship they currently face under President Bola Ahmed Tinubu's APC administration.
The national publicity secretary of the PDP, Hon Debo Ologunagba, said the secretive and corrupt administration of the petroleum sector and persistent increase in fuel prices under the Tinubu administration without due regard to the well-being of the people are akin to pushing Nigerians to the wall and daring them to do their worst.
Ologunagba, in a statement, said the APC administration has consistently shown itself to be anti-people, unconcerned, and deaf to the agonies of millions of Nigerians who can no longer afford their daily meals, medications, and basic family support due to the catastrophic high cost of living occasioned by the insensitive and reckless policies of the Tinubu administration.
Residents Worried Over Fuel Hike
Following the increase in pump price and fuel scarcity, some motorists in Kano State have parked their cars to board commercial tricycles to work and business places, expressing concern over the hike in price.
A check by LEADERSHIP on Wednesday in some parts of the Kano metropolitan area revealed that most of the major filling stations, such as the NNPC, A.A Rano, Total, and Aliko, were not dispensing fuel, and the busy roads witnessed less vehicular movement.
A resident of Jaba in Unity Estate who identified himself as Paul told LEADERSHIP that he had parked his car and decided to take a commercial tricycle to work after the stress of trying to buying fuel.
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He said that before the recent increase, he spent an average of N20,000 weekly on fuel for his car, an expense he doubts he can continue.
According to him, "Even yesterday that the PMS price rose to about N950 in some filling stations, there was still queues. I can't go and waste my time queuing and going late to work and overburdening myself.
Another resident of Gama, Tukur Abdullahi, told LEADERSHIP that he bought a litre of fuel at a black market filling station in his locality for N1,112 to fuel his motorcycle to work.
He said that due to the high cost of fuel, he parked his car to reduce expenses, noting that his job requires him to move around, and riding his motorcycle makes it easier to cope with the rising cost of fuel.
Similarly, Bilkisu Nasidi a resident at zoo road while lamenting on the situation noted that, she has resulted to using tricycle and in some instances, trek a distance, using the opportunity to do some exercise.
Meanwhile, on Tuesday, after the NNPCL reviewed the price of PMS upward from N617 to N897, most filling stations started dispensing fuel between N904 and N950. Still, as of Wednesday, most had stopped, leaving residents and motorists to patronise black marketers who sold a litre within the range of N1020 to N1500.
NBA Condemns Fuel Price Hike, Says Hoarding Cause Of Artificial Scarcity
The Nigerian Bar Association (NBA) Maiduguri Branch has condemned the recent fuel price increment by the federal government through the NNPCL, saying that it comes at a time of significant economic hardship for Nigerians.
The condemnation was contained in a statement signed and issued on Wednesday by the NBA chairman, Barr. Hamza Zanna, and secretary, Barr. Zakariya Umar, respectively, which was obtained by LEADERSHIP in Maiduguri.
The statement further raised concern about the subsequent deliberate fuel hoarding by most filling stations within Maiduguri and its environs, which has caused artificial fuel scarcity and increased hardship for the people.
