The Trade Union Congress (TUC) of Nigeria has warned that the price of Premium Motor Spirit (PMS), commonly known as petrol, could surge to around ₦2,000 per litre unless urgent steps are taken to address rising global crude oil prices and the weakening naira.
Speaking on Thursday, April 9, TUC President Festus Osifo urged the Federal Government to allocate 60% of excess crude oil revenue. Generated from prices exceeding the 2026 budget benchmark—to subsidize crude feedstock for the Dangote Refinery and other modular refineries. He emphasized that this measure could reduce the prices of petrol, diesel, and jet fuel within two weeks.
“Currently, petrol prices are nearing ₦2,000 per litre in some regions of the country. Nigerian workers are enduring severe hardship as a result,” Osifo stated.
He further explained that the rising cost of diesel is also driving up production expenses. Which, in turn, increases the prices of goods. “This situation is not only affecting transportation but also manufacturing. If left unchecked, the inflation rate—which we recently celebrated as declining—will reverse and start climbing again,” he warned.
Osifo highlighted the urgency of the proposal, noting that the 2026 Appropriation Act set the crude oil price benchmark at $64.85 per barrel. With current global crude prices hovering around $100 per barrel due to the Middle East conflict. And the blockade of the Strait of Hormuz, the government is earning an excess of approximately $35.15 per barrel.
He proposed that at least 60% of this excess revenue—roughly $20 per barrel—be used to subsidize crude supplied to local refineries. “By subsidizing crude feedstock at the production level, rather than finished products. We can eliminate the risks of diversion and abuse that plagued the previous fuel subsidy system,” Osifo explained.
“When you subsidize crude directly, it’s less prone to abuse because the subsidy applied at the production stage. I can assure you that within one to two weeks. The prices of PMS, diesel, and jet fuel will drop significantly,” he concluded.
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