TUC urges FG to slash fuel prices
The Trade Union Congress (TUC) has issued a strong call to the Federal Government to roll back fuel prices to their June 2023 levels. The union, alarmed by the relentless surge in petroleum costs, also suggested selling dollars to the Dangote Refinery at a fixed exchange rate of ₦1,000 to $1 in a bid to stabilize fuel prices nationwide.
Fuel prices have been a growing concern since President Bola Tinubu announced the removal of the fuel subsidy during his inauguration speech on May 29, 2023. The immediate aftermath saw the price of petrol soar from ₦184 in Lagos to around ₦600 per liter. In recent months, prices have escalated further, exceeding ₦900 per liter following a series of price hikes implemented by the Nigerian National Petroleum Company Limited (NNPCL).
At a press briefing in Abuja, TUC President Festus Osifo expressed the union’s dissatisfaction with the current fuel pricing situation, demanding that the Federal Government intervene urgently. Osifo called for a return to the fuel prices that were in place before the subsidy removal, but with an added demand: that prices be lowered even further.
“We want the price of the product to go below what it was before; not just reverse to what it was, but to go below,” Osifo stated firmly.
One of the TUC’s key proposals is for the government to supply foreign exchange to the Dangote Refinery at a fixed exchange rate of ₦1,000 per dollar, rather than at the prevailing market rate of over ₦1,600 per dollar. This intervention, according to Osifo, would help reduce the cost of refining fuel and bring prices back in line with pre-subsidy removal levels.
“The solution we are proposing, if implemented, will take us back to the price we had as of June last year,” he emphasized.
Osifo argued that the government should not leave the oil sector solely to market forces, as fuel is a critical commodity that impacts the lives of all Nigerians. He pointed out that globally, governments intervene in crucial sectors to maintain stability, and Nigeria should be no different.
“There’s no government in the world that doesn’t intervene in its critical sectors,” Osifo said. “The Federal Government cannot leave the oil sector to the vagaries and gyrations of our naira.”
In addition to affordability, Osifo stressed the importance of fuel availability and accessibility, warning that the Dangote Refinery alone may not be able to meet Nigeria’s daily fuel demands. He proposed that the NNPCL should allow other marketers to lift petrol from the refinery while sourcing additional refined products from abroad if necessary.
“If the production from Dangote Refinery is less than 15 million liters per day, it is not sufficient,” Osifo explained. “While efforts are being made to ramp up production, we should source the difference from other suppliers to ensure availability across Nigeria until Dangote can meet full demand.”
The TUC’s demands come amid widespread public frustration over the rising cost of living, driven largely by soaring fuel prices. The union’s proposals aim to offer a practical solution to reduce fuel costs, boost availability, and cushion the impact on Nigerians, many of whom rely heavily on petrol for their daily activities.
