The Trade Union Congress (TUC) has proposed the introduction of a production subsidy for the Dangote Refinery and other modular refineries as a strategic measure to lower the soaring cost of petrol.
Speaking on Channels Television’s Politics Today, TUC President Festus Osifo suggested that the Federal Government utilize the current windfall from global oil prices to cushion the economic impact on Nigerian citizens.
Osifo noted that with international crude prices surging due to the ongoing conflict involving the US, Israel, and Iran, Nigeria is earning significantly more than its initial budget projections.
He argued that the government could take a portion of the excess revenue, specifically the surplus earned per barrel, and use it to subsidize crude oil supplied to local refineries.
This approach he said would allow these facilities to produce cheaper fuel without reverting to the controversial consumption subsidies that the government has vowed to avoid.
The TUC leader further urged the leadership to think innovatively to assist the populace.
Osifo maintained that focusing on the production side of the value chain provides a viable middle ground that supports local industry while directly lowering pump prices for the average Nigerian.
As Brent crude hits $125 per barrel and local prices continue to fluctuate, the union insists that immediate intervention is necessary to prevent further economic hardship.