The Trade Union Congress of Nigeria (TUC) has warned that the price of Premium Motor Spirit (petrol) may rise to about ₦2,000 per litre if immediate steps are not taken to address the impact of rising global crude oil prices and the weakening naira.
Speaking on Thursday, April 9, TUC President Festus Osifo called on the Federal Government to act swiftly by allocating 60% of excess crude oil revenue above the 2026 budget benchmark to subsidise crude supply for refineries, including the Dangote Refinery and other modular plants. He noted that this move could reduce petrol, diesel, and jet fuel prices within weeks.
Osifo expressed concern that petrol prices are already approaching ₦2,000 per litre in some parts of the country, placing severe strain on Nigerian workers. He explained that the rising cost of fuel is increasing transportation and production expenses, which in turn drives up the prices of goods and services, potentially reversing the recent decline in inflation.
He further explained that the 2026 budget benchmark for crude oil is set at $64.85 per barrel, while current global prices are around $100 per barrel due to tensions in the Middle East and disruptions such as the blockade of the Strait of Hormuz. This, he said, gives the government an excess earning of about $35 per barrel.
According to Osifo, at least 60% of this excess—approximately $20 per barrel—should be redirected to subsidise crude supplied to local refineries, especially those producing diesel.
He emphasized that subsidising crude at the production level is more effective and transparent than subsidising finished fuel products, as it reduces the risk of diversion and abuse seen in past subsidy regimes. He added that such an intervention could lead to a noticeable drop in fuel prices within one to two weeks.