The Trade Union Congress (TUC) has urged the Federal Government to introduce a “production subsidy” for the Dangote Refinery and modular refineries as part of efforts to reduce the soaring cost of petrol across Nigeria.
TUC President, Festus Osifo, made the proposal during an appearance on Channels Television’s Politics Today, arguing that the government should channel part of its excess crude oil revenue into supporting local refining instead of reintroducing fuel subsidies.
According to Osifo, Nigeria is currently earning significantly more from crude oil sales than initially projected in the national budget, and part of the additional revenue could be used to subsidise crude supplied to local refineries.
He explained that cheaper crude supply to refineries like Dangote and other modular operators would ultimately lower the production cost of Premium Motor Spirit (PMS), leading to reduced pump prices for Nigerians.
The labour leader maintained that while the Federal Government has rejected the return of fuel subsidies, it must explore innovative solutions to cushion the impact of rising living costs on citizens.
Petrol prices have climbed sharply in recent weeks, with prices ranging between ₦800 and ₦1,300 depending on location, amid global market tensions triggered by the US/Israel-Iran conflict.
Meanwhile, the Federal Government has continued to insist that it will not return to fuel subsidies or impose price controls, reaffirming its commitment to market-driven economic reforms.
