- TUC had warned petrol prices could rise to N2,000 per litre
- The union had proposed using excess crude revenue to subsidise refineries
- It had urged the government to stabilise the naira to reduce inflation
The Trade Union Congress of Nigeria has called on the Federal Government to deploy excess crude oil revenue to subsidise local refineries as part of efforts to ease the burden of rising fuel prices on Nigerians.
Speaking at a press briefing in Abuja on Thursday, the TUC President, Festus Osifo, warned that the price of Premium Motor Spirit (petrol) could rise to as high as N2,000 per litre if urgent intervention measures are not implemented.
Osifo attributed the steady increase in fuel prices to a combination of global crude oil volatility and exchange rate instability, both of which have intensified economic hardship for Nigerian workers. He noted that international geopolitical tensions, particularly involving the United States, Israel, and Iran, have disrupted global oil supply dynamics, thereby influencing prices.
The labour leader further linked the surge in petrol prices to the continued depreciation of the naira, stressing that the weakening currency has amplified inflationary pressures and eroded workers’ purchasing power.
To address the situation, Osifo proposed that the government should channel a significant portion of excess crude revenue into supporting domestic refining capacity. He explained that with the 2024 budget benchmark set at $64.85 per barrel, any revenue generated above that threshold constitutes surplus funds shared among the three tiers of government.
According to him, at least 60 per cent of such excess revenue should be used to subsidise crude oil supplied to local refineries, including the Dangote Refinery and other modular facilities.
He argued that subsidising crude supply directly to refineries would be more efficient and less prone to abuse than traditional fuel subsidies, as it targets production rather than consumption. This, he said, would ultimately lead to a reduction in the pump price of petroleum products.
Osifo also urged the government to prioritise exchange rate stability, noting that a stronger and more stable naira would significantly lower the cost of imported goods and energy.
The TUC stated that it would formally present its recommendations to the Federal Government, including the Presidency, with the aim of ensuring swift implementation of policies to alleviate the economic challenges facing Nigerians.