Fuel Price Shock: NLC, OPS Mount Pressure as Petrol Nears N1,400/Litre, Raising Fears of Economic Strain!

Reported by Mustapha Omolabake Omowumi (Journalist) | Sele Media Africa

Mounting concerns over Nigeria’s deepening cost-of-living crisis have intensified as the price of Premium Motor Spirit (PMS), commonly known as petrol, surges toward N1,400 per litre in several parts of the country. The development has triggered urgent calls for government intervention from the Nigeria Labour Congress (NLC) and the Organised Private Sector of Nigeria (OPS), both warning of severe economic consequences if immediate action is not taken.

Recent market trends indicate that fuel prices have continued to climb following the full deregulation of the downstream petroleum sector and the removal of fuel subsidies by the administration of Bola Ahmed Tinubu in 2023. While the policy was intended to reduce fiscal pressure and encourage market efficiency, its ripple effects have significantly increased transportation, production, and operational costs nationwide.

The NLC has expressed alarm over what it describes as “unsustainable economic pressure” on Nigerian workers. According to union leaders, the steady rise in petrol prices is eroding purchasing power and worsening inflationary trends, with basic goods and services becoming increasingly unaffordable. The labour body has called on the federal government to urgently implement palliative measures, review taxation frameworks in the petroleum sector, and ensure transparency in pricing mechanisms.

Similarly, the OPS, representing key business groups including manufacturers, exporters, and service providers, has warned that the escalating cost of fuel could force many businesses particularly small and medium enterprises (SMEs) to shut down. The group emphasized that energy costs remain a critical input for production and logistics, and the current pricing trajectory could lead to job losses, reduced industrial output, and weakened investor confidence.

Industry analysts attribute the sharp rise in petrol prices to a combination of factors, including exchange rate volatility, high import costs, and ongoing supply chain inefficiencies. Despite the operational commencement of the Dangote Refinery, expectations of immediate price stabilization have yet to materialize at scale, as distribution logistics and market integration challenges persist.

Economic experts have also pointed to the broader macroeconomic implications of rising fuel costs. Inflation in Nigeria has remained persistently high, driven in part by energy prices that directly influence transportation and food supply chains. According to data from the National Bureau of Statistics, headline inflation continues to trend upward, compounding the financial strain on households already grappling with stagnant wages.

In response, policy recommendations from stakeholders include accelerating local refining capacity, stabilizing the naira through foreign exchange reforms, and strengthening regulatory oversight to prevent price manipulation. There are also calls for targeted subsidies or social safety nets to cushion the impact on vulnerable populations without reversing broader market reforms.

The federal government has maintained that deregulation remains essential for long-term economic sustainability, arguing that previous subsidy regimes were fiscally burdensome and prone to inefficiencies. However, public sentiment appears increasingly strained, with citizens demanding tangible relief measures amid rising living costs.

Multiple reputable media organizations, including The Guardian Nigeria, Premium Times, Channels Television, and Reuters, have reported on the escalating petrol prices and the growing pressure on the government from labour unions and business stakeholders.

As Nigeria navigates this critical economic phase, the coming weeks are expected to test the government’s policy resilience and responsiveness. The balance between sustaining market reforms and addressing immediate socio-economic challenges will be pivotal in shaping both public confidence and economic stability.

Sources: The Guardian Nigeria, Premium Times, Channels Television, Reuters

Mustapha Labake Omowumi

Mustapha Labake Omowumi is a journalist from Ibadan, Oyo State, and a graduate of the Nigeria Certificate in Education (NCE) in Economics and Mathematics. He demonstrates a strong commitment to professional journalism, with a keen interest in writing and storytelling, guided by principles of self-discipline, accuracy, and trustworthiness.

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