Business News of Wednesday, 1 October 2025

Source: www.punchng.com

Fuel queues resurface as PENGASSAN, Dangote feud deepens

Nigeria has been thrown into another round of fuel queues following the shutdown of oil and gas facilities by the Petroleum and Natural Gas Senior Staff Association of Nigeria in protest against the alleged sacking of 800 workers at the Dangote Petroleum Refinery.

The action, which began at the start of the week, has triggered queues at filling stations in Abuja and Lagos, with fears that the crisis could spread nationwide if not urgently resolved.

The strike, which has paralysed operations at regulatory agencies including the Nigerian National Petroleum Company Limited, the Nigerian Upstream Petroleum Regulatory Commission, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, has also disrupted loading activities at several depots and tank farms.

Though the Dangote refinery loaded and supplied fuel to partners on Monday and Tuesday, many depots and retail outlets remained shut in solidarity with PENGASSAN. The closures triggered panic-buying as motorists rushed to filling stations still operating.

By Tuesday, long queues had resurfaced across Abuja and Lagos. Some motorists complained of waiting for hours, while others resorted to the black market, where a 10-litre jerry can of petrol sold between N13,500 and N15,000, translating to N1,350 to N1,500 per litre, far above the official price of below N900.

Social media amplified public frustration. A user, Charles Anazodo, lamented, “See what PENGASSAN has caused. They claimed on TV that there’s enough stock for 30 days; now queues are everywhere because of this baseless standoff with Dangote.”

Another Abuja resident, Retson Tedheke, described the strike as an “own goal,” accusing unions of sabotaging ordinary Nigerians while blaming the Dangote Group unfairly.

PENGASSAN maintains that its strike action is a legitimate response to alleged mass layoffs at the refinery. The association claimed that Dangote Refinery terminated the contracts of 800 Nigerian workers who had joined the union, describing the move as anti-labour and discriminatory.

Union President Festus Osifo had earlier assured Nigerians on national television that fuel supply would not be disrupted, stating that depots had enough stock to sustain the country for 30 days. But the reality on the ground told a different story as depots in Apapa, Lagos, and filling stations nationwide remained shut.

The union also ordered its members to cut crude oil and gas supply to the refinery while staging round-the-clock prayer vigils at field locations.

The refinery has strongly rejected the allegations, describing the union’s claims as exaggerated and misleading. A spokesperson insisted that only a small number of staff were affected in what the company called a “reorganisation exercise” targeting individuals accused of sabotage.

In a statement, the refinery accused PENGASSAN and the Trade Union Congress of prioritising union dues and personal interests over workers’ welfare. The company cited Osifo’s admission that the union had demanded check-off dues remittances immediately after workers unionised.

“PENGASSAN and TUC are two peas in a pod. Their interests do not extend beyond themselves and the oligarchs that run their affairs. Their primary concern is the monthly check-off dues that feed their lifestyles,” the statement read.

The refinery further urged the Federal Government to resist union pressure, warning that Nigeria risked sliding back into “the dark ages of energy insecurity and industrial sabotage.”

The crisis took a new turn on Monday when the Industrial Court declared PENGASSAN’s strike action illegal. The ruling came in response to a case brought by the union itself against the refinery. The court ordered the immediate suspension of the strike, describing the action as disruptive to national interest.

Despite the ruling, PENGASSAN members maintained pickets at several agency offices and depots, with activities in key oil and gas facilities still grounded by midweek.

The strike’s ripple effects were quickly felt in the downstream market. Petrol pump prices in Abuja rose sharply, with independent marketers selling at N910 per litre, compared to N890 at NNPC retail outlets. In Lagos, some stations adjusted to N841 per litre, while in Abuja, the new price hovered at N851.

Meanwhile, black marketers capitalised on the scarcity, openly hawking petrol in jerry cans around shut stations in Wuse, Garki, and the Central Business District. The sharp price hike worsened public anxiety amid Nigeria’s already high inflation and falling household incomes.

Despite the disruptions, the refinery announced that its partners, including MRS Oil Nigeria Plc, had begun selling petrol at N841 per litre in Lagos and N851 per litre in Abuja.

Company officials also confirmed that the refinery’s newly launched fleet of over 1,000 compressed natural gas-powered trucks had started transporting products nationwide. The initiative, unveiled on September 15, was designed to lower gantry prices to N820 per litre, with phased rollouts across Lagos, Abuja, Kwara, Delta, Edo, and Rivers States.

An official, who spoke to our correspondent in confidence, due to the lack of authorisation to speak on the matter, said, “Our production is not disturbed by the strike. Yes, MRS and other lead partners are selling at N841 in Lagos and N851 in Abuja.”

The Federal Government has stepped in to mediate the escalating conflict, holding talks with both union leaders and Dangote management. Officials expressed concern that the standoff could derail efforts to stabilise fuel supply and worsen Nigeria’s economic woes.

Industry analysts warned that while the Dangote Refinery has continued to process crude and sell products, its reliance on third-party logistics leaves it vulnerable to broader strikes by other unions, such as the National Union of Petroleum and Natural Gas Workers.

Already, local trade sources said many depots in Lagos were battling low inventories, with some suspending sales due to uncertainty over future supply. For ordinary Nigerians, the return of fuel queues is a painful reminder of years of energy insecurity.

While Dangote’s direct distribution and price cuts signal long-term relief, the immediate impact of union strikes, depot shutdowns, and regulatory disruptions has created confusion and hardship. Transport fares in Abuja and Lagos have not yet spiked, but commuters expressed fear that prolonged scarcity will push costs higher in the coming days.

The crisis has once again exposed the fragile balance between labour rights, corporate interests, and national energy security. As mediation efforts intensify, Nigerians can only hope that reason prevails quickly enough to prevent the queues from becoming a permanent feature of daily life.