The Trade Union Congress (TUC) has urged the Federal Government to introduce a subsidy on crude oil supplied to local refineries, including the Dangote Refinery, as part of efforts to reduce rising fuel prices driven by global geopolitical tensions.
The proposal was made in Abuja on Thursday during a press conference addressed by TUC President, Festus Osifo, who said the ongoing conflict involving the United States, Israel, and Iran has contributed to a sharp rise in global crude oil prices, worsening Nigeria’s domestic cost of living.
Speaking at the briefing in Abuja, Osifo warned that petrol prices in parts of the country were approaching N2,000 per litre, describing the situation as increasingly unbearable for Nigerian workers.
“The cost of petrol is heading towards N2,000 per litre, depending on which part of the country,” he said.
He argued that Nigeria’s current revenue windfall from higher global oil prices should be partially redirected to cushion domestic fuel costs through targeted support for local refineries.
According to him, the union is proposing that about 60 percent of excess crude revenue above the budget benchmark of $64.85 per barrel be used to subsidise crude supplied to domestic refineries.
Osifo explained that the difference between the benchmark and higher market prices could be channelled into reducing production costs at refineries, which would in turn lower pump prices.
“So, with that, you are enabling and subsidising production,” he said.
He added that subsidising crude supply would be more transparent and easier to manage than traditional fuel subsidies, which Nigeria has struggled with in the past.
The TUC also called on the government to strengthen the naira and address inflation, arguing that currency depreciation continues to drive up the cost of goods and services across the country.
Osifo further urged authorities to begin the process of salary review for workers and support wage adjustments to cushion economic hardship.
He also raised concerns over insecurity, calling for stronger government action to protect lives and restore stability nationwide.
