The Nigeria Labour Congress Threatens Nationwide Strike Over Potential Increase in Petrol Price

The Nigeria Labour Congress (NLC) has issued a warning that it will declare a nationwide strike if the pump price of petrol exceeds N617 naira. This article explores the reasons behind the potential price hike and discusses the alternative solution of Compressed Natural Gas (CNG).

The Nigeria Labour Congress (NLC) has cautioned against a possible hike in the pump price of petrol, stating that it will result in a nationwide strike. The NLC President, Joe Ajaero, made this announcement during the African Trade Union Alliance Meeting in Abuja. This article delves into the details of the potential price increase and highlights the alternative solution of Compressed Natural Gas (CNG).

Scarcity of Foreign Exchange to Import Petrol:

Dealers seeking to import petrol are currently facing challenges due to the scarcity of foreign exchange. As a result, their plans to import the commodity have been put on hold. This scarcity is impacting the availability and affordability of petrol in Nigeria.

NLC Threatens Nationwide Strike:

The NLC has threatened to initiate a nationwide strike if the pump price of petrol exceeds the existing price of N617 naira. The labor union has vowed to carry out a total, comprehensive, and indefinite shutdown of the country in response to any further price hikes.

Potential Price Increase:

Oil marketers have indicated that the cost of petrol, also known as Premium Motor Spirit, may rise to between N680 and N720 per litre in the coming weeks. This projection is based on the current exchange rate of the dollar, which is trading between N910 and N950 at the parallel market.

Market Forces and Exchange Rate Impact:

Since the removal of petrol subsidy, the fuel pump price is now determined by market forces and the exchange rate between the dollar and the naira. Chinedu Okoronkwo, the National President of IPMAN, emphasized that the rising dollar has a direct impact on the price of fuel in Nigeria.

Alternative Solution: Compressed Natural Gas (CNG):

To mitigate the impact of fuel price increases, the NLC and IPMAN recommend exploring alternative energy sources. Compressed Natural Gas (CNG) is suggested as a viable option to reduce dependency on petrol. IPMAN members have already adopted CNG as an alternative fuel, which helps alleviate pressure on the naira and reduces the impact of rising dollar exchange rates.

The potential hike in the pump price of petrol in Nigeria has sparked concerns and warnings from the Nigeria Labour Congress. The scarcity of foreign exchange and the impact of market forces and exchange rates contribute to the rising fuel prices. To combat this issue, the adoption of alternative energy sources like Compressed Natural Gas (CNG) is proposed as a solution. It remains to be seen how the government and stakeholders will address these challenges and ensure the availability and affordability of fuel for Nigerian citizens.