The Nigeria Labour Congress (NLC) has issued a stern ultimatum in response to growing concerns about the potential rise in the cost of Premium Motor Spirit (PMS), commonly referred to as petrol.
Fueled by speculations surrounding fluctuations in foreign exchange rates impacting fuel prices, the NLC has emphasized its determination to take drastic action if the situation escalates.
In a significant show of solidarity, the Trade Union Congress (TUC) has aligned itself with the NLC’s stance, joining in the protest against the proposed fuel price hike.
At a recent meeting held in Abuja, NLC President Comrade Joe Ajaero condemned the potential increase as “illegitimate.”
Chief Chinedu Ukadike, the National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), underscored the rationale behind the potential price surge.
He explained that the cost of petrol is now influenced by the fluctuations in foreign exchange rates, which in turn affect the demand and supply dynamics of forex.
This, he pointed out, impacts not just petroleum products but also other imported goods.
As forex becomes scarcer due to heightened demand, the price of PMS could reach N750 per litre.
Ukadike further disclosed that oil marketers continue to source dollars from the parallel market due to challenges in converting funds from the Central Bank of Nigeria’s official Importers and Exporters window.
He projected that if the exchange rate remains in the range of N910 to N950 per dollar, Nigerians could expect a price range of N680 to N720 per litre.
However, if the exchange rate hits N1,000 per dollar, the price could soar to N750 per litre.
Speaking on AIT, NLC President Ajaero issued a stark warning that the NLC is prepared to initiate a nationwide shutdown should petrol pump prices surge beyond the current N617.
This assertion was made during an African Trade Union alliance meeting in Abuja, where the NLC emphasized the significance of addressing the union’s demands without compromise.