NLC: Fuel price hike is against our agreement with FG

The Nigeria Labour Congress (NLC) says the recent increase in the pump price of premium motor spirit (PMS), otherwise known as petrol, is against the agreement reached with the federal government.

The Petroleum Products Marketing Company (PPMC) recently increased the ex-depot price of petrol to N155.17 per litre from N147.67 per litre.

Consequently, marketers would sell the product to motorists between N168 and N170 per litre.

In a statement on Monday, Ayuba Wabba, president of NLC, said the recent increase of fuel has worsened the current level of pain and anguish in Nigeria and called for its reversal with immediate effect.

Ayuba said the country will plunge into economic crisis and millions of jobs will be lost if prices of refined petroleum products and other essential goods and services continue to increase.

“The recent increase in the pump price of PMS is clearly against the spirit and content of what organized labour agreed with government at the last negotiations over the last fuel price increase,” NLC said.

“It has also cast in very bad light our utmost good faith with regards to government explanations that it lacks funds to continue bankrolling the so-called subsidy payments as such would sooner than later cripple the entire economy, throw the country into severe economic crisis and cause loss of jobs in millions.”

NLC urged the federal government to declare a state of emergency in the downstream sector and enter into a contract of refining with refineries closer to Nigeria.

“This will ensure that the cost of supplying crude oil is negotiated away from the prevailing international market rate so that the landing cost of refined petroleum products is significantly reduced.”

The congress also demanded that the federal government review the entire process of licensing for modular and bigger refineries.

In March, the federal executive council approved a monthly review of petroleum products prices in line with the international market prices following the impact the COVID-19 pandemic.