TUC President, Festus Osifo
TUC warns petrol could hit N2,000 per litre, urges FG to use excess crude revenue to subsidise local eefineries
The Trade Union Congress of Nigeria (TUC) has called on the Federal Government to channel excess crude oil revenue into subsidising domestic refineries, warning that without urgent action, the price of Premium Motor Spirit (PMS) may rise to as high as N2,000 per litre.
Speaking at a press briefing in Abuja on Thursday, TUC President Festus Osifo highlighted the mounting pressure rising fuel costs are placing on Nigerian workers.
“The persistent increase in petrol prices, driven by global crude volatility and naira depreciation, is worsening economic hardship for workers across the country,” Osifo stated.
He attributed the surge partly to international tensions involving the United States, Israel, and Iran, which have disrupted global oil supply, and noted that the weakening naira continues to compound inflationary pressures and erode the real value of salaries.
To address the crisis, Osifo proposed that the government allocate at least 60 percent of excess crude revenue—generated when international oil prices exceed the 2024 budget benchmark of $64.85 per barrel—to subsidise crude supplied to local refineries, including the Dangote Refinery and other modular facilities.
He explained: “Even if government-owned refineries are fully operational, petrol prices may not drop significantly unless crude supply is subsidised. Selling crude at international rates to local refineries still results in high pump prices.”
Osifo also called for stabilising the naira, arguing that exchange rate stability would reduce the cost of imported energy and other goods.
He reiterated the TUC’s support for the commercialisation of state-owned refineries, stressing that reducing government interference could improve efficiency and profitability in the sector.
On alternative energy, the TUC president expressed concern over the slow development of Compressed Natural Gas (CNG) infrastructure, acknowledging the policy’s potential but warning that its short-term impact remains limited due to inadequate refuelling facilities.
Regarding national security, Osifo lamented persistent insecurity across Nigeria, emphasising that no meaningful development can occur in an unsafe environment. While commending the armed forces, police, and intelligence agencies, he urged the government to equip security operatives with modern tools, intelligence, and technology to tackle insurgency and criminality more effectively.
On labour matters, Osifo noted the intense pressure facing workers in both public and private sectors. He revealed ongoing discussions around wage reviews and collective bargaining agreements to align with current economic realities, stressing the need for broader interventions to protect workers from inflation and rising living costs.
“The cost of petrol is heading towards N2,000 per litre, depending on your location. It has deeply affected the purchasing power of Nigerian workers,” Osifo said. “Let the government take at least 60 percent of excess crude revenue and use it to subsidise crude supplied to refineries. Subsidising production directly ensures immediate reduction in petrol prices.”
The TUC plans to formally communicate its proposals to the Federal Government, including the Presidency, to ensure prompt implementation of measures to ease the hardship facing Nigerians.
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