Petrol price may hit ₦2,000 per litre without govt action – TUC warns

The Trade Union Congress of Nigeria (TUC) has urged the Federal Government to channel excess crude oil revenue into supporting local refineries as part of efforts to reduce the impact of rising fuel prices on citizens.

The call was made by the President of the Congress, Festus Osifo, during a press briefing held in Abuja on Thursday. He stressed that targeted support for local refining could help stabilise fuel costs and ease economic pressure on Nigerians.

Osifo also warned that the price of Premium Motor Spirit (petrol) could rise significantly, potentially reaching as high as ₦2,000 per litre, if urgent policy interventions are not implemented.

Osifo said the persistent increase in the pump price of petrol, driven by global crude oil price volatility and exchange rate challenges, had worsened the economic hardship faced by Nigerian workers.

The TUC leader attributed the surge partly to international developments, including tensions involving the United States, Israel and Iran, which have affected global oil supply dynamics.

Osifo also linked the rising cost of petrol to the depreciation of the naira, warning that the continued weakening of the currency was compounding inflationary pressures and reducing the real value of workers’ earnings.

To address the situation, the TUC president proposed that the government should utilise excess revenue generated when crude oil prices exceeded the budget benchmark to support local refining.

He explained that with the 2024 budget benchmarked at $64.85 per barrel, any price above that threshold results in additional revenue shared by the three tiers of government, adding that at least 60 per cent of such excess funds should be channelled into subsidising crude supplied to domestic refineries, including the Dangote Refinery and other modular refineries.

He also urged authorities to take deliberate steps to stabilise the currency, noting that exchange rate stability would significantly reduce the cost of imported energy and other goods.

The TUC said it would formally communicate its proposals to the Federal Government, including the Presidency, with a view to ensuring the prompt implementation of measures to ease the hardship facing Nigerians.

He said, “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 per cent 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.