Fuel Price Hike in Nigeria: TUC Proposes Crude Subsidy for Local Refineries to Ease Costs

The Trade Union Congress (TUC) of Nigeria has called on the federal government to intervene in the rising cost of fuel by introducing a crude subsidy framework for domestic refineries. The labour union suggested that a significant portion of excess crude oil revenue should be redirected to support local fuel production, including operations at major refineries such as the Dangote Refinery.

According to the TUC, allocating at least 60 per cent of revenue generated above the federal budget benchmark could help reduce production costs in the downstream oil sector. The union argued that such a move would ease pressure on Nigerians currently grappling with sharp increases in petrol prices across the country.

TUC President-General, Comrade Festus Osifo, made the proposal in Abuja, noting that petrol prices have surged to nearly N2,000 per litre in some areas. He warned that this trend is placing severe financial strain on households, transport operators, and small businesses already struggling with broader economic challenges.

Osifo explained that when crude oil sells above the government’s budget benchmark of $64.85 per barrel, the resulting surplus revenue is typically shared among the three tiers of government. He suggested that channeling a portion of this excess into subsidising crude supply for local refineries would lower the cost of production and eventually reflect in reduced prices of petrol, diesel, and aviation fuel.

He further stressed that rising global oil prices and supply disruptions have worsened Nigeria’s inflationary pressures, pushing up transport and manufacturing costs. While acknowledging government efforts to promote alternative energy such as compressed natural gas (CNG), he noted that infrastructure gaps remain a major obstacle. Osifo also urged stronger investment in modern security systems to address ongoing insecurity challenges across the country.

source: Leadership