The Trade Union Congress of Nigeria (TUC) has urged the Federal Government of Nigeria to deploy excess revenue from crude oil sales above the national budget benchmark to subsidise crude supplied to domestic refineries, warning that petrol prices could rise to about N2,000 per litre if urgent steps are not taken.
Speaking with journalists in Abuja, TUC President Festus Osifo said the ongoing tensions in the Middle East and rising global crude oil prices were already pushing up the pump price of Premium Motor Spirit (PMS), worsening hardship for workers and households.
Osifo said the rising cost of petrol was affecting transportation, manufacturing and the general cost of living nationwide. He warned that higher diesel prices were also increasing production costs, which would ultimately translate into higher prices for goods.
He noted that the 2024 national budget benchmarked crude oil at $64.85 per barrel, stressing that revenue earned above that level should partly be used to support local refining in order to reduce the price of petroleum products.
“If crude is selling at around $100 per barrel and the benchmark is $64.85, the difference should be partly used to subsidise crude supplied to local refineries,” he said, adding that such support could quickly reduce the prices of petrol, diesel and aviation fuel.
Osifo, who also serves as President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), argued that subsidising crude supply to refineries would avoid the abuses associated with the former petrol subsidy regime because the intervention would target production rather than consumption.
He further called on the government to accelerate investment in Compressed Natural Gas (CNG) infrastructure, describing large-scale adoption of CNG as a more sustainable solution to Nigeria’s transportation fuel challenges.
According to him, inadequate refuelling infrastructure across major highways remains a major obstacle to adoption, warning that motorists may be discouraged from switching to CNG vehicles without reliable access to refuelling stations nationwide.
Osifo also linked rising petrol prices to the continued depreciation of the naira, stating that exchange rate instability significantly influences domestic fuel pricing. He suggested that the naira trading between N800 and N900 to the dollar would help ease inflationary pressure.
He additionally raised concerns about the country’s security situation, describing persistent killings in parts of Nigeria as unacceptable, while urging the government to equip security agencies with modern tools to improve operations.
On workers’ welfare, the TUC president said organised labour was engaging employers and government authorities on measures to cushion the economic hardship facing workers, noting that although the next national minimum wage review is scheduled for 2027, discussions were ongoing to address current challenges.