Marketers Raise Concerns Over Possible Fuel Price Hike as PENGASSAN Strike Commences

Petroleum marketers across the country have expressed growing concerns that the ongoing nationwide strike declared by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) could trigger disruptions in fuel supply chains, ultimately leading to a hike in pump prices. The strike, which began following unresolved disputes between the oil workers’ union and stakeholders in the industry, has already raised tensions within the downstream and midstream sectors.

According to PENGASSAN, the industrial action was necessary to press home long-standing demands concerning workers’ welfare, unresolved disputes with certain operators, and concerns over unfair labor practices. The union also cited issues of safety standards, regulatory lapses, and unpaid entitlements in some oil companies. Leaders of the association explained that repeated negotiations and engagements with management and government authorities had failed to yield meaningful results, prompting the declaration of strike action.

Already, the effects of the strike are beginning to ripple across the oil sector. Several depots and terminals have reportedly suspended operations, while some marketers say product lifting has slowed down drastically. With supply disruptions looming, fears of scarcity are mounting, particularly in urban centers like Lagos, Abuja, and Port Harcourt, where fuel consumption is high. Industry watchers caution that prolonged disruptions could cause artificial shortages, leading to panic buying and possible price hikes at the pump.

Independent Petroleum Marketers Association of Nigeria (IPMAN) members voiced their worries, noting that even short-term disruptions in fuel distribution can destabilize the market. They stressed that once depots are locked and supply chains disrupted, retail stations quickly experience stock-outs, which often result in long queues and speculative pricing by some operators. The marketers urged government and union leaders to resolve the dispute swiftly to prevent nationwide shortages.

The Major Oil Marketers Association of Nigeria (MOMAN) also warned that Nigeria’s fragile fuel distribution network could be severely tested if the strike persists. They noted that despite recent government interventions to stabilize fuel supply, the sector remains vulnerable to industrial disputes and logistics challenges. MOMAN added that sustained industrial action could disrupt not only petrol supply but also the distribution of diesel, aviation fuel, and other petroleum products critical to the economy.

From the labor union’s perspective, PENGASSAN leaders insist that the strike is not aimed at sabotaging the economy but at ensuring fairness, dignity, and better welfare for its members. The union maintains that oil and gas workers play a critical role in sustaining the nation’s economy, and their welfare must not be compromised. They also criticized what they described as high-handedness and poor compliance with labor laws by some companies operating in Nigeria’s petroleum industry.

The Federal Government, through the Ministry of Labour and Employment, has called for calm and appealed to the union to return to the negotiating table. Officials disclosed that dialogue is ongoing and that the government is determined to avert a prolonged industrial crisis. However, sources suggest that union leaders remain firm in their stance until concrete commitments are made to resolve their grievances.

For fuel consumers, the uncertainty is already raising anxiety. In some parts of Abuja and Lagos, motorists reported longer queues forming at petrol stations, with speculation that supplies might be affected within days if the strike continues. Some filling stations have reportedly adjusted prices slightly upwards, citing supply difficulties. Transport operators also warned that prolonged shortages could result in fare increases, further straining household incomes.

Economic analysts warn that the strike, if not quickly resolved, could have broader macroeconomic implications. Rising fuel costs would feed into transportation expenses, logistics, and ultimately, food prices—risking a fresh wave of inflationary pressures at a time when the government is working to stabilize the economy. They also noted that disruptions in aviation fuel supply could ground flights, affecting commerce and business activity.

The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) have thrown their weight behind PENGASSAN, stating that workers cannot continue to operate under poor welfare conditions while companies enjoy massive profits. They urged government agencies to enforce compliance with labor laws and ensure that oil companies respect collective bargaining agreements.

In the meantime, oil marketers and depot owners are calling for urgent mediation to avert a full-blown crisis. They argue that Nigeria’s dependence on imported refined products makes the country particularly vulnerable to supply chain shocks, and any extended industrial action could paralyze the economy.

While stakeholders continue to trade accusations and demands, Nigerians are bracing for the possibility of a fresh round of fuel scarcity. Memories of previous strikes and supply disruptions remain fresh, with long queues, black-market activities, and price hikes still vivid in public consciousness.

As the strike enters its early days, the spotlight is firmly on negotiations between the union and government authorities. The outcome will determine whether the fears of fuel marketers and consumers translate into another nationwide crisis or whether timely intervention can restore stability in the downstream oil sector. For now, the possibility of fuel price hikes looms large, leaving the public hoping for a swift resolution to prevent another wave of hardship.