The Trade Union Congress of Nigeria has warned that the price of Premium Motor Spirit could surge to as high as N2,000 per litre, proposing a fresh subsidy model that targets local refining as a buffer against escalating fuel costs.
Speaking during a press briefing in Abuja on Thursday, the TUC President, Festus Osifo, said the current trajectory of petrol pricing, driven by global crude oil volatility and exchange rate instability, is intensifying economic hardship for Nigerian workers.
He pointed to international tensions involving the United States, Israel and Iran as contributing factors disrupting global oil supply, thereby pushing up crude prices and, by extension, domestic fuel costs.
Osifo further linked the rising pump price to the depreciation of the naira, warning that the weakening currency continues to fuel inflation while eroding workers’ purchasing power.
To mitigate the trend, the TUC proposed that excess crude oil revenue generated when global oil prices exceed the 2024 budget benchmark of $64.85 per barrel should be strategically deployed to subsidise crude supply to domestic refineries.
According to him, at least 60 percent of such windfall revenue, which is typically shared among the three tiers of government, should be redirected to support local refining capacity, including the Dangote Refinery and modular refineries across the country.
He argued that subsidising crude at the production level would be more efficient and less prone to abuse, while also delivering immediate relief through reduced petroleum product prices.
Osifo also stressed the need for deliberate government action to stabilise the naira, noting that exchange rate stability would significantly cut the cost of imported energy and other goods.
The TUC said it would formally present its proposals to the Federal Government, including the Presidency, as part of efforts to fast-track interventions aimed at easing the burden on Nigerians.
“Today, the cost of petrol is heading towards N2,000 per litre, depending on the part of the country that you are in. It has deeply affected the purchasing power of the salaries that we earn as Nigerian workers.
“Let the government take that excess fund that was never budgeted for, take at least 60 percent of it, and use it to subsidise the crude being supplied to Dangote Refinery.
“The same should be done for Dangote Refinery and all modular refineries, where crude is supplied to them at that subsidised rate.
“Take the difference from the excess crude revenue, take about 60 per cent of it, and use it to subsidise the price at which crude is supplied to the refinery.
“When you subsidise crude, it cannot be abused because you are subsidising production directly. When that is done, we are going to see an immediate reduction in the price of petroleum products,” he said.
