KEY POINTS
- PENGASSAN strike halts crude supply to Dangote Refinery.
- Marketers warn of a fuel price hike.
- Blackouts loom as power plants shut down.
Nigerians face the prospect of higher fuel prices and widespread power cuts after oil workers began an indefinite strike on Monday.
The decision by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) threatens to squeeze fuel supplies and shut down most of the country’s power generation.
Fuel price hike fears grow
The strike follows the dismissal of more than 800 Nigerian staff at the Dangote Petroleum Refinery. The union accused the refinery of violating labour laws and replacing local workers with foreigners. In a resolution signed by General Secretary Lumumba Okugbawa, PENGASSAN directed its members to stop crude oil and gas supply to the refinery and related petrochemical facilities.
“All processes involving gas and crude supply to Dangote Refinery should be halted immediately,” the resolution stated. The union also ordered international oil companies to cut output tied to the plant.
Union president Festus Osifo told Channels Television that the strike had already forced a shutdown of the refinery and fertiliser plant, although the diesel plant remained in operation as of Sunday evening. He warned that the union would not call off the strike unless the sacked workers were reinstated.
Power blackouts deepen crisis
The impact stretches beyond petrol markets. Power generation companies said they would shut down all thermal stations, which account for more than 70 percent of Nigeria’s electricity supply. Without gas to feed the plants, millions of homes and businesses risk plunging into darkness, worsening economic strain.
Oil marketers echoed the warnings. The Independent Petroleum Marketers Association of Nigeria said the halt in crude supply could destabilise pump prices, shake investor confidence, and trigger emergency imports. “Disruption of crude and gas supply will trigger fuel price hikes and worsen power shortages,” said IPMAN spokesperson Chinedu Ukadike.
Marketers urged the government to intervene immediately to prevent the crisis from spiralling into inflation and further economic hardship. “A proactive Federal Government must step in through the petroleum ministry to stabilise the situation,” Ukadike said.
According to Punch, the Labour Ministry has summoned an emergency meeting between PENGASSAN and Dangote Refinery officials, but union leaders insist talks will not progress until the dismissed workers are reinstated.
