The Nigerian National Petroleum Company Limited (NNPCL) has attributed the recent surge in cooking gas prices to a temporary disruption in loading and distribution caused by the strike action of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN). According to the Group Chief Executive of NNPCL, Mr. Bayo Ojulari, the industrial action resulted in a halt in operations for several days, leading to an artificial spike in prices.
The strike, which was launched in protest of the dismissal of Nigerian workers at the Dangote Refinery, was suspended on October 1 following intervention by the federal government. The subsequent disruption to the supply chain led to a delay in the movement and loading of cooking gas, resulting in higher prices for consumers. Ojulari explained that the price increase was temporary and would ease as supply chains return to normal.
The NNPCL chief executive assured Nigerians that the cooking gas price is expected to stabilize in the coming weeks as distribution networks are fully restored. The company is working to ensure that the supply chain is normalized, which should lead to a reduction in prices. The recent price hike has affected many households that rely on cooking gas for their daily needs, and the expected price easing will come as a welcome relief.
The strike action by PENGASSAN was a significant development in the Nigerian oil and gas sector, highlighting the importance of industrial relations and the potential impact of disruptions to the supply chain. The federal government’s intervention in the dispute helped to prevent further disruption to the sector, and the suspension of the strike has paved the way for a return to normal operations.
As the Nigerian oil and gas sector continues to evolve, the need for stable industrial relations and efficient supply chain management remains crucial. The recent experience with the cooking gas price hike serves as a reminder of the importance of maintaining a stable and functional supply chain to ensure that consumers have access to essential products at affordable prices. With the supply chain expected to normalize in the coming weeks, Nigerians can look forward to a more stable cooking gas market.