The Trade Union Congress 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 the country.
President of the TUC, Festus Osifo, made the proposal on Friday while speaking during a current affairs programme on Channels Television.
Osifo said since the government had ruled out the return of fuel subsidy, authorities should consider alternative measures capable of easing the economic burden on Nigerians.
According to him, the country currently earns more revenue from crude oil sales than projected in the budget, noting that part of the excess earnings could be channelled towards supporting local refining.
He proposed that a portion of the additional revenue generated from crude oil exports be used to subsidise crude supplied to Dangote Refinery and modular refineries to enable them produce cheaper Premium Motor Spirit.
Osifo argued that such intervention would reduce production costs and ultimately lower the pump price of petrol for consumers.
“So what we proposed, knowing fully well that government may not return consumption subsidy, is a production subsidy,” he said.
The labour leader noted that modular refineries and other local refining facilities require strategic support to improve domestic fuel supply and cushion the impact of rising prices on citizens.
Petrol prices have risen sharply in recent weeks, climbing from about ₦800 per litre to nearly ₦1,300 in some locations following tensions triggered by the ongoing conflict involving the United States, Israel and Iran.
Despite growing public pressure, the Federal Government has maintained that it would not reintroduce fuel subsidy after its removal by President Bola Tinubu in May 2023.
Nigeria’s Coordinating Minister of the Economy and Minister of Finance, Taiwo Oyedele, recently reiterated the government’s position during an event in Paris.
Oyedele stated that the government would not return to subsidy payments or impose price controls, insisting that the administration remained committed to market-driven reforms.
He, however, said the situation in Iran could create fresh opportunities for Nigeria as global investors seek alternative energy markets and supply sources.
Osifo, meanwhile, called on the government to adopt creative and practical solutions to address the hardship faced by Nigerians amid the continued rise in living costs.
