The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) has warned that ongoing volatility in the global oil market could result in job losses in Nigeria’s petroleum sector.
NUPENG General Secretary, Afolabi Olawale, issued the caution during a telephone interview with Nairametrics, highlighting that tensions from the United States-Israeli conflict with Iran are straining relationships among oil marketers, depot owners, and importers.
Olawale said the long-term effects of the crisis could reduce work in the sector and negatively affect both workers and employers.
“We know that the long-term effect will also affect the workers because there might be reduction in work. For now, it has not directly affected our members because their location is here in Nigeria. But overall, you do not know the limit and extent of these things at the end of the day,” he said.
He further noted that price unpredictability is causing disputes between marketers, depot owners, and importers. “You pay for a product last week, and this week the price has gone up. All this volatility is affecting working relationships, and it will have an effect on employment and harmonious working relationships, while also distorting prices,” Olawale added.
The NUPENG official also pointed out that the cost of shipping crude oil is rising due to increased insurance premiums in a war-prone environment, further impacting global crude prices.
Olawale suggested that Nigeria should rely more on local production rather than depend heavily on fuel imports. He cited Dangote Petroleum Refinery as a key contributor to domestic energy security.
“We thank God we have Dangote that is producing; that is why our energy security should not be dependent purely on importation. Successive governments have abandoned our refineries, which is not good. And in a situation like this, what do we fall back on?” he asked.
The global oil shocks have already affected fuel prices in Nigeria. Petrol has seen three consecutive price hikes, with current pump prices above N1,000 per litre.
The Dangote refinery recently reduced its ex-depot price for Premium Motor Spirit (PMS) by N100, from N1,175 to N1,075 per litre, marking the first downward adjustment after a series of increases.
The price surges are having ripple effects across the economy, increasing transport fares and the cost of goods and services nationwide.
