TUC urges FG to subsidise refineries as fuel prices soar

The Trade Union Congress (TUC) has urged the Federal Government to deploy excess crude oil revenue to subsidise local refineries in a bid to cushion the impact of rising fuel prices on Nigerians.

 

TUC President, Festus Osifo, made the call during a press briefing in Abuja, warning that the price of Premium Motor Spirit (petrol) could rise to N2,000 per litre if urgent measures are not taken.

 

He attributed the persistent increase in fuel prices to global crude oil volatility and exchange rate pressures, noting that the situation has worsened the economic hardship faced by workers.

 

“Today, the cost of petrol is heading towards N2,000 per litre… It has deeply affected the purchasing power of the salaries that we earn as Nigerian workers,” Osifo said.

 

The labour leader explained that excess revenue generated when crude oil prices exceed the budget benchmark should be channelled into subsidising crude supplied to domestic refineries.

 

According to him, with the budget benchmark set at $64.85 per barrel, at least 60 per cent of surplus funds should be used to support refineries, including the Dangote Refinery and modular refineries.

 

“When you subsidise crude, it cannot be abused because you are subsidising production directly… we are going to see an immediate reduction in the price of petroleum products,” he added.

 

Osifo also called for measures to stabilise the naira, stressing that currency volatility continues to drive inflation and increase the cost of energy.

 

He said the TUC would formally present its proposals to the Federal Government, urging swift action to ease the burden on Nigerians.