The Trade Union Congress of Nigeria (TUC) has warned that the price of Premium Motor Spirit (petrol) could rise to as high as ₦2,000 per litre if urgent measures are not taken to stabilise the economy.
The union also called for a new subsidy framework focused on supporting local refining as a way to cushion the impact of rising fuel prices on Nigerians.
Speaking at a press briefing in Abuja on Thursday, the TUC President, Festus Osifo, said the current trajectory of fuel prices is being driven by global oil market volatility and instability in foreign exchange rates.
He said international tensions involving major oil-producing regions, including the United States, Israel and Iran, have contributed to disruptions in global crude supply, leading to higher prices that are affecting domestic markets.
Mr Osifo also linked the rising cost of petrol to the depreciation of the naira, warning that continued currency weakness is worsening inflation and reducing the purchasing power of workers.
To address the situation, the TUC proposed that a portion of excess crude oil revenue—generated when global oil prices exceed the 2024 budget benchmark of $64.85 per barrel—should be redirected to support domestic refining.
The union suggested that about 60% of such windfall revenues, currently shared between the federal, state and local governments, should instead be used to subsidise crude oil supplied to local refineries, including the Dangote Refinery and modular refineries across the country.
According to the TUC, subsidising crude at the production stage would be more efficient, reduce the risk of abuse, and help lower the cost of petroleum products in the market.
“The price of petrol is heading towards ₦2,000 per litre in some parts of the country, and this has significantly affected the purchasing power of Nigerian workers,” Mr Osifo said.
He added that the proposal would ensure that excess revenue is used directly to reduce production costs at refineries.
“When you subsidise crude, you are supporting production directly. This will lead to an immediate reduction in the price of petroleum products,” he said.
The union also urged the government to take urgent steps to stabilise the naira, arguing that exchange rate stability would reduce the cost of imported goods and ease pressure on fuel prices.
The TUC said it would formally present its proposals to the federal government, including the presidency, as part of wider efforts to address rising living costs.
