The Trade Union Congress of Nigeria (TUC) has asked the Federal Government to deploy excess crude oil revenue to subsidise local refineries.
The call was made in Abuja on Thursday by TUC President Festus Osifo, who warned that petrol prices could rise to ₦2,000 per litre if urgent action is not taken.
“Today, the cost of petrol is heading towards ₦2,000 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,” Osifo said.
Osifo explained that the persistent increase in petrol prices is driven by global crude volatility and exchange rate challenges.
He linked the surge partly to international tensions involving the United States, Israel, and Iran, which have disrupted oil supply dynamics.
He also pointed to the depreciation of the naira, warning that the weakening currency is compounding inflation and reducing the real value of workers’ earnings.
“Let the government take that excess fund that was never budgeted for, take at least 60 per cent of it, and use it to subsidise the crude being supplied to Dangote Refinery,” he said.
Proposal For Subsidised Crude Supply
Osifo explained that with the 2024 budget benchmarked at $64.85 per barrel, any price above that threshold generates additional revenue.
He proposed that at least 60% of such excess funds should be channelled into subsidising crude supplied to domestic refineries, including Dangote Refinery and modular refineries.
“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 added.
The TUC also urged authorities to stabilise the naira, noting that exchange rate stability would reduce the cost of imported energy and other goods.
The union plans to formally communicate its proposals to the Presidency soon
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