By Chinedu Echianu
The Trade Union Congress (TUC) has urged the Federal Government to introduce targeted subsidy on crude oil supplied to the Dangote Refinery and other local refineries as an immediate measure to reduce the soaring cost of petroleum products in Nigeria.
The union said the proposal involves using at least 60 percent of excess revenue generated when global crude prices exceed the federal budget benchmark to subsidize crude supply for domestic refining, a move it believes would quickly lower pump prices.
Global crude oil price currently hovers between $98 to $100 while the benchmark for crude budgeted by the National Assembly in the 2026 appropriation Act is $64.85 per barrel leading to over $33 in excess crude earnings per barrel.
Speaking in Abuja at a world press briefing on the state of the nation, President of the Trade Union Congress of Nigeria, Engr. Festus Osifo said rising fuel prices now approaching N2,000 per litre in some parts of the country have placed severe pressure on Nigerian workers.
The TUC linked the spike in prices partly to global geopolitical tensions affecting crude oil supply and warned that the situation is worsening the cost of living.
According to the union, higher fuel prices have significantly increased transportation and manufacturing costs, with a direct impact on the prices of goods and services nationwide.
It warned that if the trend continues, Nigeria risks a reversal of recent improvements in inflation, as rising production costs are passed on to consumers.
The TUC noted that many workers are already struggling with reduced purchasing power and rising daily expenses.
While acknowledging government plans to deploy compressed natural gas (CNG) buses as a long-term solution, the union said the lack of adequate CNG infrastructure across the country limits its immediate effectiveness.
It called on authorities to accelerate investment in refueling stations nationwide, stressing that without the necessary infrastructure, the transition to alternative energy sources would remain slow and ineffective.
The TUC also addressed the persistent security challenges in the country, condemning recent deadly attacks in Plateau State and describing the killings as unacceptable.
While commending the efforts of security agencies, the union called on the government to provide modern equipment and technology to strengthen the fight against terrorism.
It emphasized that national development cannot be achieved without improved security.
Reaffirming its position, the union said it would formally communicate its recommendations to the Federal Government, including the Presidency, urging swift implementation.
The TUC expressed confidence that subsidizing crude supply for local refining would lead to immediate reductions in fuel prices, ease transportation and production costs, and provide much-needed relief to Nigerians.
