The Trade Union of Nigeria(TUC), has warned that petrol (PMS) price hit N2,000 per litre if urgent measures are not put in place to cushion the impact of rising global crude prices and the depreciating naira.
In an interview on Thursday, April 9, TUC president, Festus Osifo, urged the Government to quickly deploy 60 percent of excess crude oil revenue above the 2026 budget benchmark to subsidise crude feedstock supplies to the Dangote Refinery and other modular refineries.
A measure it claims will reduce the cost of petrol, diesel and jet fuel at the pump in two weeks.
Osifo described the suggestion as an urgent intervention to relieve Nigerian workers of the agony brought on by petrol prices that are approaching ₦2,000 per litre in some regions of the country.
“Today, comrades, we are seeing that the cost of petrol is edging towards N2,000 per litre depending on the part of the country that you are. Nigerian workers are already passing through excruciating pain as we speak.
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Petrol hike to increase inflation
The same way it is affecting transportation, it is also affecting manufacturing. The cost of diesel has also gone northward, meaning that the cost of production has increased. When production costs rise, the final price of goods on the shelves will also skyrocket.
If this continues unchecked, the inflation that we are currently celebrating as going downwards will reverse and start moving up again,” he stated.
Osifo described the suggestion as an urgent intervention to relieve Nigerian workers of the agony brought on by petrol prices that are approaching ₦2,000 per litre in some areas of the nation.
He clarified that the 2026 Appropriations Act set the benchmark price for crude oil at $64.85 per barrel, adding that the government is making an extra $35.15 per barrel because of the current international crude prices, which are hovering around $100 per barrel due to the ongoing conflict in the Middle East and the blockade of the Strait of Hormuz.
“Take at least 60 percent of that excess fund about $20 per barrel and use it to subsidise the crude that is being supplied to Dangote Refineries and all modular refineries that predominantly produce AGO (diesel)” Osifo said
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The head of the TUC contended that the risk of abuse and diversion associated with the previous fuel subsidy scheme is eliminated by subsidising crude feedstock at the production level rather than finished goods.
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