The Trade Union Congress of Nigeria (TUC) has warned that the pump price of Premium Motor Spirit (PMS) could rise to about N2,000 per litre, citing global and domestic economic pressures.
Speaking in Abuja on Thursday, TUC President, Festus Osifo, attributed the looming increase to the ongoing crisis in the Middle East, particularly tensions involving Iran, Israel, and the United States, which have disrupted oil supply routes and driven up global crude prices.
Osifo said the rising cost of petrol was already worsening hardship for Nigerians, with prices in some parts of the country nearing the N2,000 mark.
“Nigerian workers are already passing through excruciating pain as we speak,” he said, noting that the impact is being felt across transportation, manufacturing, and the general cost of living.
He explained that higher diesel prices have also increased production costs, which are ultimately transferred to consumers through higher prices of goods and services.
To address the situation, the labour leader urged the Federal Government to subsidise crude oil supplied to local refineries using excess revenue generated when global oil prices exceed the budget benchmark.
According to him, such an approach would lower the cost of refining and lead to a reduction in the prices of petrol, diesel, and aviation fuel within a short period.
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Osifo, who is also a leader of the Petroleum and Natural Gas Senior Staff Association of Nigeria, argued that subsidising production rather than consumption would minimise the risk of abuse associated with past subsidy regimes.
He further identified the depreciation of the naira as a major factor driving up fuel prices, stressing that exchange rate stability is critical to reducing inflationary pressures.
As a long-term solution, he advocated accelerated investment in Compressed Natural Gas (CNG) infrastructure nationwide, noting that wider adoption of CNG-powered vehicles could reduce dependence on petrol.
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However, he warned that inadequate refuelling infrastructure remains a major challenge to the success of the initiative, urging the government to fast-track the deployment of CNG stations across major routes.
Osifo also raised concerns over the country’s security situation, describing ongoing killings in parts of Nigeria as unacceptable, while calling on the government to equip security agencies with modern tools to tackle the menace.
On workers’ welfare, he said labour unions were engaging with employers and the government to cushion the impact of the economic crisis, adding that recommendations on fuel pricing reforms and CNG expansion would be forwarded to the Presidency.
