THE Nigeria Labour Congress (NLC) has called on the Federal Government to introduce a cost-of-living allowance and provide tax relief for workers in response to the recent increase in petrol prices linked to the ongoing conflict in the Middle East.
In a statement titled “Save Nigerians From This Shock: An Urgent Relief Has Become Necessary,” the labour union, through its president, Joe Ajaero, warned that the surge in fuel prices has intensified economic hardship for Nigerian workers and citizens.
The union demanded immediate measures including a wage award and cost-of-living allowance for workers to help offset the rising cost of living.
It also urged the government to expand and reform the national cash transfer programme to ensure transparency and guarantee that financial support reaches the most vulnerable Nigerians, with adjustments reflecting current inflation levels.
Additionally, the labour body called for immediate tax relief for workers, including the suspension of what it described as regressive taxes on low-income earners.
According to the NLC, the latest fuel price increase has exposed weaknesses in Nigeria’s downstream petroleum sector and worsened the suffering of workers and their families.
The organisation also criticised the government for leaving citizens vulnerable to fluctuations in global oil prices driven by the escalating crisis involving the United States, Israel, and Iran.
The group argued that the situation demonstrates the risks of relying heavily on global market pricing while the country’s public refineries remain largely inactive.
It therefore called for urgent rehabilitation and full operation of the refineries in Port Harcourt, Warri, and Kaduna.
The NLC further stated that the sharp
rise in the prices of petrol and diesel has significantly increased transportation costs, contributing to higher food prices and deepening financial pressure on workers.
It warned that if workers can no longer afford transportation or basic necessities, the broader economy could face serious disruptions.
The labour union also pointed to projections by the Nigeria Economic Summit Group suggesting that Nigeria could gain an estimated ₦30 trillion in oil revenue due to the Middle East crisis.
It insisted that any such windfall must be directed toward improving citizens’ welfare and cushioning the economic impact of the current situation.
Meanwhile, global oil markets have continued to react to the conflict, with Brent crude rising by about three percent on Monday to around $106.50 per barrel.
Within Nigeria, petrol prices have seen multiple adjustments.
The Dangote Refinery increased its former depot price from ₦774 per litre to ₦874 before making further upward revisions to ₦995 and later ₦1,175 per litre.
Although the refinery briefly reduced the price by ₦100 following a temporary dip in crude prices, the reduction was later reversed as oil prices climbed again.
Commenting on the situation, the national president of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, warned that fuel price volatility could persist while the Middle East conflict continues.
He explained that as long as the war drives fluctuations in global crude oil prices, countries dependent on imported refined petroleum products—including Nigeria—will continue to experience unstable fuel prices.
Gillis-Harry also urged the government to establish a domestic energy bank that would provide funding support for businesses within the energy sector.
