NLC demands immediate wage awards as petrol prices rise

The Nigeria Labour Congress (NLC) has urged the Federal Government to promptly grant wage increases for workers due to escalating petrol prices, which exacerbate economic hardships. NLC President Joe Ajaero made this demand in a statement released in Abuja on Wednesday, highlighting the adverse effects of higher petrol prices on workers' livelihoods.

Ajaero stated that petrol is currently priced at around N1,430 per litre in major cities, with prices surging in less accessible regions. He cautioned that escalating transportation costs could further escalate food prices, school fees, rents, and tariffs. Ajaero emphasized that the continuous rise in petrol prices is severely impacting workers' purchasing power and overall quality of life, particularly as transportation expenses mount.

He attributed a portion of the recent petrol price hike to the resurgence of conflict in the Gulf, but argued that Nigeria must establish safeguards for citizens against abrupt international energy market fluctuations. Ajaero urged the government to swiftly introduce fair wage enhancements, ensure adequate crude oil supply to local refineries, and augment the nation's storage capacities.

He contended that these measures would alleviate the repercussions of global market disruptions, bolster energy security, create employment opportunities, and generate supplementary economic value. Ajaero also noted that government intervention through subsidies or support measures remains justified during emergencies that impose severe economic strain on citizens.

The NLC president explained that the intervention was imperative as the government was earning $35 to $40 more than the budgeted crude oil price in the international spot market. Petrol prices have recently encountered renewed pressure due to higher international crude oil prices and market instability. Earlier in July, Dangote Refinery transitioned from naira-denominated to dollar-based pricing for petrol, setting its ex-depot price at $0.779 per litre.

Nairametrics reported that this shift implied the naira cost of the refinery's petrol would vary with fluctuations in the exchange rate. Ongoing cost-of-living pressures have adversely affected Nigerian households in recent times. They pointed out that structural reforms usually entail an adjustment phase before improvements in productivity and real incomes become apparent.