By Joe Udo
ABUJA (CONVERSEER) – The Trade Union Congress of Nigeria (TUC) has warned that the price of Premium Motor Spirit (PMS) could rise to as high as N2,000 per litre, amid mounting pressure from global oil market volatility and exchange rate instability.
TUC President, Festus Osifo, issued the warning on Thursday during a press briefing in Abuja, where he outlined concerns over the worsening economic impact on Nigerian workers.
Osifo attributed the upward trajectory in petrol prices to ongoing international tensions involving the United States, Israel and Iran, noting that disruptions in global oil supply have driven up crude oil prices, with direct consequences for domestic fuel costs.
He further linked the situation to the depreciation of the naira, stressing that the weakening currency has continued to fuel inflation and erode the purchasing power of Nigerian workers.
“Today, the cost of petrol is heading towards N2,000 per litre, depending on the part of the country that you are in. It has deeply affected the purchasing power of the salaries that we earn as Nigerian workers,” Osifo said.
To address the growing crisis, the TUC proposed a new subsidy framework centred on domestic refining. Osifo recommended that excess crude oil revenue generated when global oil prices exceed the 2024 budget benchmark of $64.85 per barrel be redirected to support local refineries.
He suggested that at least 60 per cent of such windfall revenue, typically shared among the three tiers of government, should be allocated to subsidise crude supply to domestic facilities, including the Dangote Refinery and modular refineries nationwide.
“Let the government take that excess fund that was never budgeted for, take at least 60 per cent of it, and use it to subsidise the crude being supplied to Dangote Refinery,” he stated.
“The same should be done for Dangote Refinery and all modular refineries, where crude is supplied to them at that subsidised rate.”
Osifo argued that subsidising crude oil at the production stage would reduce the risk of abuse commonly associated with downstream subsidies, while ensuring immediate relief through lower pump prices.
“When you subsidise crude, it cannot be abused because you are subsidising production directly. When that is done, we are going to see an immediate reduction in the price of petroleum products,” he added.
The labour body also called for urgent government intervention to stabilise the naira, noting that exchange rate stability remains critical to reducing the cost of imported goods and energy.
The TUC disclosed that it would formally present its proposals to the Federal Government, including the Presidency, as part of broader efforts to ease the rising cost of living across the country.
