TUC proposes refinery support scheme to reduce petrol prices

The Trade Union Congress (TUC) has called for the introduction of a “production subsidy” for the Dangote Refinery and other modular refineries as part of efforts to bring down the soaring cost of Premium Motor Spirit (PMS), also known as petrol.

TUC President, Festus Osifo, made the suggestion on Friday during an appearance on Politics Today, a current affairs programme aired on Channels Television.

According to Osifo, since the Federal Government has ruled out the return of fuel subsidies, alternative measures should be considered to cushion the effect of rising petrol prices on Nigerians.

He noted that the country currently earns more from crude oil sales than projected in the national budget.

“We are making far above what was budgeted as revenue from crude oil sales. At least about $35 extra is being realised per barrel,” he stated.

Osifo explained that the TUC’s proposal centres on using part of the excess oil earnings to support local refining operations.

He said the union was not advocating a return to fuel consumption subsidy but rather a subsidy targeted at production.

According to him, the government could channel part of the additional revenue into subsidising crude oil supplied to the Dangote Refinery and modular refineries to enable them produce petrol at lower costs.

“If government takes part of the excess earnings and reduces the cost of crude supplied to local refineries, they will be able to sell PMS at cheaper rates,” he added.

Petrol prices have climbed sharply in recent weeks, increasing from around ₦800 to nearly ₦1,300 per litre in some parts of the country following the outbreak of the US-Israel-Iran conflict.

Despite growing calls for the restoration of fuel subsidies, which were removed after President Bola Ahmed Tinubu assumed office in May 2023, the Federal Government has maintained that it will not reverse the policy.

Meanwhile, Nigeria’s Coordinating Minister of the Economy and Minister of Finance, Taiwo Oyedele, recently reaffirmed the government’s commitment to market-driven reforms.

Speaking at an event in Paris, Oyedele stated that the government would neither reintroduce fuel subsidies nor impose price controls, arguing that such measures distort the economy.

He also noted that the situation in Iran could create fresh opportunities for Nigeria as countries seek alternative energy sources and new investment destinations.

Osifo, however, urged the government to adopt innovative strategies to ease the hardship faced by citizens amid rising living costs.

He called on authorities to “think outside the box” and implement policies that would provide relief for Nigerians.