Ajaero Says Rising Fuel Costs Will Worsen Poverty, Urges FG to Expand Emergency Oil Storage
The Nigeria Labour Congress (NLC) has urged the Federal Government to urgently introduce wage awards for workers nationwide and sell crude oil to local refineries in naira to cushion the impact of rising petrol prices.
In a statement titled “Save the Situation Now,” NLC President Joe Ajaero also called for the expansion of the country’s national storage capacity to strengthen energy security and prepare for emergencies.
The NLC said petrol now sells for about N1,430 per litre in major cities, with prices reportedly higher in less accessible areas.
Ajaero warned that the rising cost of petrol would worsen the economic hardship facing Nigerians, noting that higher transportation costs usually lead to increases in food prices, rent, school fees, tariffs and other essential goods and services.
He said the latest price surge came as government pressure on oil marketers to reduce pump prices in line with lower international crude prices was beginning to yield results.
According to Ajaero, the renewed increase was linked to the resurgence of conflict in the Gulf, but Nigeria’s status as an oil-producing country and its growing local refining capacity should provide some protection against external shocks.
He urged the government to immediately provide reasonable wage awards to workers, make sufficient crude available to local refineries in naira and expand national petroleum storage capacity.
The NLC said the measures would help create jobs, generate economic value and address emerging security challenges.
Ajaero also argued that government intervention through subsidies or other forms of support was justified in an emergency, saying oil-producing countries had introduced various measures to protect their citizens from the impact of rising energy costs.
He further said the government was earning additional revenue from international crude prices, estimating the windfall at between $35 and $40 per barrel above the budgeted figure.
The NLC president urged the government to use part of the additional revenue to protect households and businesses from the effects of rising fuel prices.