The Trade Union Congress of Nigeria has called on the Federal Government to deploy excess crude oil revenue to subsidise local refineries as a way of cushioning the impact of rising fuel prices on Nigerians.
President of the Congress, Festus Osifo, who made the call during a press briefing in Abuja on Thursday, warned that the price of Premium Motor Spirit, popularly called Petrol, could climb to as high as N2,000 per litre if urgent measures were not taken.
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.