Stephen Ukandu, Umuahia
The Trade Union Congress of Nigeria (TUC) has warned that the price of Premium Motor Spirit (PMS) could rise to as high as ₦2,000 per litre if the Federal Government fails to act swiftly to address rising crude oil prices and the continued depreciation of the naira.
Speaking in Abuja, TUC President Festus Osifo said the current fuel pricing trend is already placing severe strain on Nigerian workers and the broader economy, with ripple effects across transportation, manufacturing, and the cost of goods.
According to him, petrol prices are already approaching the ₦2,000 mark in some parts of the country, worsening the hardship faced by citizens.
He warned that, if left unchecked, the situation could reverse the recent downward trend in inflation.
To mitigate the crisis, the TUC proposed that the Federal Government channel 60 per cent of excess crude oil revenue—generated from prices above the 2026 budget benchmark of $64.85 per barrel—into subsidising crude oil supplied to domestic refineries, including the Dangote Refinery and other modular facilities.
Osifo explained that with global oil prices hovering around $100 per barrel, amid tensions in the Middle East and disruptions such as the blockade of the Strait of Hormuz, Nigeria is earning significant excess revenue—estimated at over $35 per barrel.
He argued that allocating about $20 from this surplus to support local refining could lead to an immediate reduction in the prices of petrol, diesel, and aviation fuel.
He emphasised that subsidising crude at the production level would be more transparent and less prone to abuse than the previous subsidy regime on finished petroleum products.
The labour leader also identified the weakening naira as a major driver of rising fuel costs, noting that a stronger exchange rate—ideally between ₦800 and ₦900 per dollar—would significantly ease pressure on fuel prices and overall living costs.
While acknowledging the government’s push for Compressed Natural Gas (CNG) as an alternative energy source, the TUC said inadequate refuelling infrastructure along major highways limits its immediate effectiveness.
Beyond economic concerns, the union also raised alarm over the country’s deteriorating security situation, describing recent killings as unacceptable.
Osifo urged the government to prioritise security by equipping the military and other agencies with modern technology and intelligence tools to combat insurgency effectively.
The TUC said it plans to formally present its proposal to President Bola Tinubu through the Office of the Secretary to the Government of the Federation, urging immediate implementation to ease the burden on Nigerians.
Labour also indicated that discussions are ongoing on possible wage adjustments and other relief measures, even as the next national minimum wage review is scheduled for 2027.
