From Atiku Sarki, Abuja
The Trade Union Congress of Nigeria (TUC) has called on the Federal Government, as a matter of urgency, to deploy excess crude oil revenue to subsidise local refineries in order to cushion the impact of rising fuel prices on Nigerians.
The union warned that if urgent steps are not taken, considering global crude oil prices and the depreciation of the naira, the price of petrol may rise to about N2,000 per litre.
The President of the Congress, Comrade (Engr.) Festus Osifo, made this known while briefing newsmen at a press conference in Abuja on Thursday.
He stated that the price of Premium Motor Spirit (PMS) could climb to as high as N2,000 per litre if urgent measures are not implemented.
He noted that the persistent increase in the pump price of petrol, driven by global crude oil price volatility and exchange rate challenges, has worsened the economic hardship faced by Nigerian workers and ordinary citizens.
“Today, comrades, we are seeing that the cost of petrol is edging towards N2,000 per litre depending on the part of the country.
“Nigerian workers are already passing through excruciating pain as we speak,” he said.
Osifo, who is also the President of PENGASSAN, observed that geopolitical tensions involving the United States, Israel, and Iran, affecting global oil supply, may have contributed to the situation.
He also linked the rising cost of petrol to the depreciation of the naira, noting that it is compounding inflationary pressures and reducing the real value of workers’ earnings.
To address the situation, he advised the government to deploy part of the excess revenue generated when crude oil prices exceed the budget benchmark to support local refineries.
He stressed that with the 2024 budget benchmark set at $64.85 per barrel, any price above that threshold results in additional revenue shared by the three tiers of government.
He added that at least 60 per cent of such excess funds should be channelled into subsidising crude supplied to domestic refineries, including the Dangote Refinery and other modular refineries.
Speaking on domestic refining, he said that even if government-owned refineries were fully operational, petrol prices might not significantly drop unless crude supply is subsidised.
He added that the high cost of crude oil, if sold at international market rates to local refineries, would still translate into high pump prices.
Osifo, however, expressed concern over the slow pace of investment in Compressed Natural Gas (CNG) infrastructure.
He noted that while the policy is commendable, its impact will not be felt in the short term due to inadequate refuelling facilities across the country.
He also raised concerns over the state of insecurity nationwide, particularly in the North-East, North-Central, and North-West regions.
According to him, the worsening insecurity across the country is alarming.
He noted that the challenge has persisted for over a decade, resulting in the loss of lives and property.
He said recent attacks in parts of the country, including Plateau State, highlight the urgency for decisive action, stressing that there can be no meaningful development in an unsafe environment.
The TUC president commended the efforts of security agencies, including the armed forces, police, and intelligence services, for their commitment to tackling terrorism and other criminal activities.
He noted that without their sacrifices, the situation could have been far worse.
He further called on the government to provide modern equipment, intelligence, and technological support to security operatives to enhance their effectiveness in combating insecurity.
“Strengthening national security must take priority, as it forms the foundation for economic growth, infrastructure development, and social stability,” he said.