Marketers fear fuel price hike as PENGASSAN strike begins

Petroleum marketers in Nigeria are expressing fears of a potential fuel price hike and scarcity as a result of the ongoing nationwide strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).¹ The strike, which began on Monday, September 29, 2025, is a response to a labor dispute with the Dangote Petroleum Refinery.²

The Core of the Crisis

• Alleged Sackings: The dispute stems from PENGASSAN’s claim that the Dangote Refinery unjustly sacked over 800 Nigerian workers for attempting to unionize.³ The union has described the action as a clear violation of Nigerian and international labor laws.⁴
• Refinery’s Position: The Dangote management has refuted these claims, stating that the layoffs were part of a “total reorganisation” to address “repeated acts of sabotage” and were not related to union activities.⁵ It maintains that a small number of staff were affected and that the majority of its workforce remains employed.
• PENGASSAN’s Action: As a result, PENGASSAN has taken a drastic measure, ordering its members to halt crude oil and gas supplies to the Dangote Refinery.⁶ This directive has raised significant concerns about its impact on the nation’s energy supply.⁷

Fears of Fuel Price Hike and Scarcity

• Impact on Supply: Marketers, particularly those in the Independent Petroleum Marketers Association of Nigeria (IPMAN), have warned that the disruption of crude and gas supply to the refinery could destabilize fuel prices and lead to widespread shortages.⁸ The Dangote Refinery, being a major domestic producer of petroleum products, is crucial to Nigeria’s energy security.⁹
• Dependence on Dangote: Nigeria’s post-subsidy removal policy has increasingly relied on the Dangote Refinery to meet local fuel demand and reduce dependence on costly imports. A disruption in the refinery’s operations could force marketers to revert to importing products, a move that would likely result in higher pump prices due to foreign exchange fluctuations and other logistics costs.
• National Grid at Risk: The strike’s impact extends beyond fuel.¹⁰ Power generation companies (GenCos) have also reported that they have received notices from gas suppliers to shut down thermal plants due to PENGASSAN’s directive.¹¹ This could lead to a nationwide electricity blackout, compounding the economic and social crisis.

Government and Other Stakeholders’ Reactions

• Government Intervention: The Federal Government, through the Minister of Labour and Employment, has intervened in the dispute.¹² An emergency meeting has been called with all parties to find a swift resolution and prevent the crisis from escalating further. The government has appealed to PENGASSAN to suspend the strike, citing the potential for heavy revenue losses and hardship for Nigerians.¹³
• Conflicting Statements: While PENGASSAN initially assured that the strike would not disrupt the supply of petrol to the public, citing a 30-day supply in tanks, marketers and other stakeholders remain cautious, fearing the worst-case scenario.
• Condemnation from Others: The Dangote Refinery has condemned the strike as “economic sabotage,” and various consumer forums and political figures have urged PENGASSAN to reconsider its actions, arguing that it could plunge the country back into the era of fuel queues and black markets.¹⁴