Marketers Warn of Fuel Price Surge as PENGASSAN Strike Shuts Down Dangote Refinery

Nigerians face looming fuel scarcity and nationwide blackouts as oil workers down tools

Nigeria could be heading into tougher days as the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) began a nationwide strike on Monday, halting crude oil and gas supplies to the Dangote Petroleum Refinery.

Oil marketers warn the move could unleash a twin blow—spiralling petrol prices and widespread power outages—as the action also forces thermal power plants to shut down. Thermal stations generate more than 70% of Nigeria’s electricity.

Union Halts Supply Over Mass Sackings

PENGASSAN’s strike directive followed the dismissal of over 800 Nigerian workers at the Dangote Refinery, allegedly for joining the union. In its resolution, the union accused the refinery of violating labour laws and replacing locals with foreigners.

“All processes involving gas and crude supply to Dangote Refinery should be halted immediately,” the resolution read.

On Sunday, PENGASSAN President Festus Osifo said the facility’s refinery and fertiliser units had already been shut down, warning operations would not resume until the sacked workers were reinstated.

Marketers, GenCos Sound Alarm

The Independent Petroleum Marketers Association of Nigeria (IPMAN) warned the disruption would destabilise the market, trigger pump price hikes, and worsen Nigeria’s fragile power situation.

“There is no market stability and no return on investment,” IPMAN spokesperson Chinedu Ukadike said. “This disruption could cause galloping inflation unless the Federal Government intervenes swiftly.”

Similarly, the Association of Power Generation Companies (APGC) confirmed gas suppliers had ordered thermal plants to shut down, warning of “imminent darkness” as hydro stations alone cannot sustain the national grid.

TUC, Consumer Groups Split

While the Trade Union Congress (TUC) threw its weight behind PENGASSAN—demanding reinstatement of the workers and an independent probe—some consumer advocacy groups accused the union of “politicising” the energy sector and threatening national stability.

The Forum of Concerned Nigerian Consumers urged security agencies to prevent the shutdown from escalating into a full-blown energy crisis.

Dangote, Government React

The Dangote Group hit back, accusing PENGASSAN of sabotage and selfish interests. “This reckless and lawless strike is designed to weaponise hardship against Nigerians,” the company said, insisting the sackings were linked to safety and efficiency, not anti-union activities.

Labour Minister Muhammad Dingyadi appealed for calm, warning that the strike would worsen hardship for Nigerians. He has convened an emergency meeting between both parties in Abuja today.

What’s at Stake

With the refinery, fertiliser plant, and thermal stations shut down, analysts warn the strike could destabilise fuel supply chains, trigger blackouts, and stoke inflationary pressures unless urgent compromise is reached.

Whether dialogue eases tensions—or Nigeria plunges deeper into crisis—may be decided in the coming hours.