The Nigerian Trade Union Congress (TUC) has recommended that the federal government subsidize feedstock for regional refineries, such as the Dangote Refinery, by allocating at least 60% of extra crude oil earnings beyond the budget benchmark. According to the labor center, such drastic steps are still necessary to curb skyrocketing fuel prices and reduce the financial burden on Nigerian workers. The recommendation was made yesterday in Abuja by TUC president-general Comrade Festus Osifo, who warned that households and companies are under intolerable strain due to the soaring cost of gasoline, which in some places is approaching N2,000 per liter.
According to Osifo, the three levels of government now split the extra money generated by crude oil prices above the budget benchmark of $64.85 per barrel. He maintained that a sizable amount of this excess should be used to subsidize the supply of crude oil for domestic refining. This would minimize production costs and swiftly result in lower pump prices for gasoline, diesel, and aviation fuel.
The labor leader pointed out that the steep rise in gasoline prices, exacerbated by geopolitical tensions that disrupted global supply chains, has increased production and transportation costs, which in turn have raised the cost of goods and services. He claims that the current circumstances run the risk of undoing the previous, slight drop in inflation. "We are seeing that the cost of petroleum is edging towards N2,000 per liter, and Nigerian workers are facing excruciating pain as we speak," he stated.
In other words, if the price of crude oil surpasses the budget benchmark, the government should utilize at least 60% of the excess to subsidize the supply of crude to Dangote Refinery and other nearby refineries.
Direct production subsidies lower feedstock costs, which immediately lowers the price of petroleum products at the pump. When this is finished, Nigerians will start to feel better since PMS, AGO, and jet fuel prices will decrease in one to two weeks.
Osifo emphasized the necessity of both short-term relief efforts and long-term investments in alternative energy sources like compressed natural gas (CNG). Although he acknowledged the government's attempts to implement CNG-powered buses, he stated that insufficient infrastructure continues to be a significant obstacle limiting their impact.
While praising security agencies for their continuous efforts, he also voiced concerns about the nation's ongoing vulnerability and urged the government to prioritize investment in cutting-edge technology and security equipment.
