- Marketers Warn of Fuel Price Surge as PENGASSAN Begins Strike
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Marketers and GenCos warn disruption could trigger inflation and grid collapse.
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Dangote calls strike reckless, FG convenes emergency talks to resolve crisis.
Nigeria is bracing for a fresh round of economic hardship as the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) commenced an indefinite nationwide strike on Monday, a move that threatens fuel price hikes and widespread power outages.
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EKO HOT BLOG reports that the strike followed the dismissal of over 800 Nigerian workers at the Dangote Petroleum Refinery, which the union said violated labour laws and workers’ right to association. In a resolution signed by its General Secretary, Lumumba Okugbawa, PENGASSAN directed members to halt crude oil and gas supply to the refinery, alleging that the affected workers were replaced by foreigners.
By Sunday evening, the union confirmed a shutdown of the refinery and fertiliser plant, though the diesel unit was still operational. PENGASSAN President Festus Osifo warned that operations would remain grounded until the dismissed workers were reinstated.
Oil marketers have warned that the disruption could destabilise the fuel market, drive up pump prices, and worsen inflation. “Stopping crude and gas supply will trigger unnecessary galloping inflation,” said IPMAN spokesperson Chinedu Ukadike, who urged the Federal Government to intervene swiftly.
The strike has also hit the power sector, with gas suppliers instructing power generation companies to shut down thermal plants, which provide more than 70 per cent of Nigeria’s electricity. The Association of Power Generation Companies warned of imminent nationwide blackouts, saying hydropower plants alone cannot sustain the grid.
While the Trade Union Congress has declared support for PENGASSAN, consumer groups and industry stakeholders accused the union of politicising the energy sector. Dangote Refinery, in its reaction, described the strike as “reckless and dangerous,” insisting the sackings were part of internal restructuring for safety and efficiency.
The Minister of Labour, Muhammad Dingyadi, has summoned both parties to an emergency meeting in Abuja, appealing for restraint to avert deeper economic disruption.
