NLC accuses marketers of price inflation as petrol landing cost drops to N971.57

The Nigerian Labour Congress (NLC) has accused marketers of the Premium Motor Spirit (PMS) popularly known as petrol of price inflation as the latest report showed that the landing cost of the product has dropped by 20.34% to N971.57 per litre over the past three months.

The Major Energies Marketers Association of Nigeria (MEMAN) revealed the drop in price in its latest competency centre daily energy bulletin for November 8, 2024.

The decline in landing costs on Nigeria’s shores was in line with the global market trend, which had seen fluctuations and stabilisation of supply chain factors.

The decline ought to have also resulted in a reduction of petrol prices in the country, however, the retail price of the commodity in Nigeria increased by N443 from N617 per litre on August 1, 2024, to N1,060 per litre as of November 8, 2024.

MEMAN’s data revealed that oil marketers imported petrol at N1,219 per litre at a Brent crude oil price benchmark of $80.72 per barrel and at an exchange rate of N1,611 per dollar in August. Petrol sold at N617 per litre during this period.

But in November when the landing cost was estimated at N971.57, Brent crude price benchmark of $75.57 per barrel and an exchange rate of N1,665.84 per dollar, petrol currently dispenses for N1,060 at the Nigerian National Petroleum Company Limited (NNPCL) retail station and N1,180 at stations owned by independent marketers.

According to the document, landing cost stood at N945.63 in September 2024 and N903.64 per litre in October 2024.

The association, which has been relentless in the call for a full deregulation of the downstream sector, usually attributes increases or decreases in petrol prices to factors such as the exchange rate and inflation, among other reasons.

NLC accuses petrol marketers

The report may have learnt credence to the claim by the NLC that petrol prices are significantly higher than the actual market value.

The body has severally accused marketers of exploiting Nigerians and adding to an already heightened suffering striding to the government’s harsh economic policies.

The union reiterated the allegation in a communique released following its National Executive Council meeting on Sunday, November 10, 2024.

“The NEC-in-session noted with increasing dismay the shenanigans around the appropriate pricing of petrol (PMS) in Nigeria. It 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.

“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. It is entirely possible that Nigerian workers and masses are being ripped off by those who control the levers of Economic power in Nigeria which explains why the domestic public refineries may not immediately be allowed to come onstream.

“NLC demands appropriate pricing of petrol and calls for the Public domestic refineries in PH, Warri and Kaduna to quickly come back on stream to break up the monopolistic stranglehold the big players have on the industry,” NLC said, directing its members to embark on a nationwide strike beginning from December 1, 2024.

NLC contended that Nigerians are being exploited, with citizens enduring heightened suffering and hunger due to government policies that are pushing many into destitution.