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The Trade Union Congress (TUC) has proposed what it described as a “production subsidy” for Dangote Refinery and other modular refineries to reduce the cost of premium motor spirit (PMS), commonly known as petrol.
TUC president, Festus Osifo, made the proposal on Friday while speaking on Channels Television’s Politics Today.
Osifo argued that since the Nigerian Government has ruled out the return of petrol subsidy, authorities should consider measures to ease the impact of rising fuel prices on Nigerians.
“So for us as a country, we are making a lot of money. In excess of what we budgeted. All right, so today we make at least $35 or so dollars per barrel beyond what we budgeted,” Osifo said during the programme.
“So, what we proposed, knowing and understanding that they wouldn’t want to bring consumption subsidy, we were advocating for a production subsidy. Production subsidy, in that today we have modular refineries, right?
“So we were advocating that this extra $35, for example, that you are making per barrel, why don’t you take half of it, for example, and use it to subsidise the crude that you are giving to Dangote Refinery and the modular refineries so that they will be able to produce cheaper PMS?”
Since the outbreak of the US/Israel-Iran war, petrol prices have risen from about ₦800 to nearly ₦1,300 in some parts of the country.
Although many Nigerians have called for the return of fuel subsidy, which President Bola Tinubu removed after assuming office in May 2023, the Nigerian Government has maintained that it will not reverse the policy.
“We will not bring back fuel subsidy because it creates distortions for the economy, and we won’t introduce price control because we believe in the market… the situation in Iran presents new opportunities for us as the world looks to diversify sources of energy and invest in new markets,” Minister of Finance Taiwo Oyedele said.
Osifo, however, urged the government to “think out of the box and quickly do things to assist its citizens”.
