The Trade Union Congress has urged the Federal Government to introduce a special subsidy for the Dangote Refinery and modular refineries to reduce the rising cost of petrol across the country.
TUC President Festus Osifo made the proposal during an appearance on Channels Television’s Politics Today, where he argued that Nigerians are already carrying too much economic pressure following the sharp increase in fuel prices triggered by the Middle East crisis.
Petrol prices have climbed from around ₦800 per litre to more than ₦1,300 in several parts of the country within weeks, pushing up transport fares, food prices and the overall cost of living. Despite growing public complaints, the Federal Government has maintained that it will not return to the old subsidy regime.
Osifo said the union was not asking the government to revive the controversial fuel subsidy system that drained public finances for years. Instead, he proposed what he described as a “production subsidy” that would support local refining and help reduce pump prices.
According to him, Nigeria is currently earning far above its oil benchmark because of higher crude prices in the international market. He said part of the excess revenue should be used to provide cheaper crude oil to the Dangote Refinery and modular refineries so they can produce petrol at lower costs.
He argued that supporting local refiners directly would be more practical than subsidising imported fuel, especially now that Nigeria has expanded refining capacity. Osifo added that the approach could stabilise fuel supply, reduce dependence on imports and ease pressure on consumers battling inflation.
The TUC president also criticised what he called the government’s slow response to worsening hardship, insisting that authorities must find creative ways to protect citizens from the economic impact of rising energy costs.
His comments came days after the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, reaffirmed that the Federal Government would not reintroduce fuel subsidies or impose price controls, saying Nigeria must stay committed to market-driven reforms.
The debate over petrol pricing has intensified in recent weeks as global crude oil prices continue to react to tensions involving the United States, Israel and Iran, raising fresh concerns over energy costs and inflation in Nigeria.