Fuel queues return as PENGASSAN–Dangote refinery dispute escalates

Fuel Queues Deepen Amid Labour Dispute

Nigeria is once again grappling with fuel queues after industrial action by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) disrupted operations in the oil and gas sector.

The strike, which stemmed from alleged mass layoffs at the Dangote Petroleum Refinery, has caused widespread disruption, particularly in Abuja and Lagos, sparking fears of a nationwide crisis if not swiftly resolved.

The industrial action, which began at the start of the week, has crippled key regulatory agencies including the Nigerian National Petroleum Company Limited (NNPCL), the Nigerian Upstream Petroleum Regulatory Commission, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

The shutdown of depots and tank farms has worsened public anxiety, forcing motorists into long fuel queues and triggering panic buying across major cities.

By Tuesday, filling stations in Abuja and Lagos were overwhelmed as motorists scrambled to purchase fuel.

While the official pump price hovered around N890 to N910 per litre, the black market surged, with a 10-litre jerry can selling between N13,500 and N15,000 — translating to an unprecedented N1,500 per litre.

Union vs Dangote: Root of the Fuel Queues

PENGASSAN claims that the Dangote Refinery terminated the contracts of 800 workers allegedly due to union membership.

The union described the move as discriminatory, asserting that its strike action was a necessary response to protect workers’ rights.

However, Dangote Refinery has rejected these allegations, insisting that only a small number of employees were affected in what it called a routine “reorganisation exercise.”

The company accused PENGASSAN and the Trade Union Congress (TUC) of exaggerating claims for personal gain, particularly around union dues collection.

“The unions’ priority is not the welfare of workers but their own financial interests,” a refinery spokesperson argued, urging the Federal Government to resist pressure that could derail national energy security.

Fuel Queues Despite Court Ruling

In a twist, the National Industrial Court declared PENGASSAN’s strike illegal, ordering its immediate suspension.

The ruling followed a case brought by the union itself against the refinery.

Despite the judgment, union members continued to picket depots and agency offices, with operations at key oil and gas facilities still paralysed by midweek.

The persistence of fuel queues despite the court order reflects the complexity of Nigeria’s fuel supply chain.

While Dangote Refinery has maintained production and sales through partners such as MRS Oil Nigeria Plc, much of the downstream logistics depend on third-party operators sympathetic to union action.

Impact on Prices and Daily Life

The ripple effect of the strike has been immediate and severe. Independent marketers in Abuja adjusted petrol prices to N910 per litre, compared to N890 at NNPCL outlets.

In Lagos, pump prices rose to N841, even as black-market hawkers exploited the scarcity.

For commuters, the resurgence of fuel queues has rekindled memories of past crises.

Although transport fares in Abuja and Lagos have yet to spike sharply, many fear prolonged scarcity will soon push fares beyond the reach of ordinary Nigerians already battling inflation and shrinking incomes.

Dangote’s Measures to Ease Fuel Queues

To mitigate the crisis, Dangote Refinery confirmed that its recently launched fleet of over 1,000 compressed natural gas (CNG)-powered trucks has begun transporting products nationwide.

This initiative, rolled out in September, was designed to reduce costs and ensure more reliable distribution.

Partners such as MRS are already selling petrol at N841 per litre in Lagos and N851 per litre in Abuja, according to company officials.

“Our production is not disturbed by the strike,” one source noted, emphasising that Dangote’s direct distribution strategy is cushioning the impact of the disruptions.

Government Steps In

The Federal Government has waded into the dispute, holding mediation sessions with both union leaders and Dangote Refinery management.

Officials expressed concern that the escalating standoff could derail efforts to stabilise fuel supply and deepen Nigeria’s economic challenges.

Industry analysts warn that unless a compromise is reached, the fuel queues could spread nationwide.

They argue that while Dangote’s entry into the market was expected to end Nigeria’s reliance on imports and reduce chronic shortages, the refinery’s dependence on third-party logistics leaves it vulnerable to union strikes and political disputes.

A Delicate Balance for Nigeria’s Energy Future

The crisis underscores the delicate balance between safeguarding labour rights, protecting corporate interests, and ensuring national energy security.

Nigerians, weary of recurring fuel queues, see the current standoff as a test of whether the government can enforce stability in the sector.

For now, motorists are left with long waits at filling stations, rising pump prices, and deep uncertainty about the future of fuel supply.

While Dangote’s measures offer some short-term relief, sustained industrial peace and government intervention remain crucial to preventing a full-blown national fuel crisis.

As negotiations continue, Nigerians can only hope that reason prevails and that the queues once again become a thing of the past, rather than a recurring feature of daily life.

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