The Trade Union Congress has proposed a production subsidy for local refineries, including the Dangote Refinery, as part of efforts to reduce the rising cost of petrol in Nigeria.

TUC President Festus Osifo made the proposal on Friday during an appearance on Channels Television’s Politics Today.

Osifo said the union understood that the Federal Government was unwilling to restore fuel subsidies but argued that alternative measures were needed to cushion the impact of soaring fuel prices on Nigerians.

According to him, Nigeria is currently earning more from crude oil sales than projected in the national budget due to higher global oil prices.

“So, what we proposed, knowing and understanding that they wouldn’t want to bring consumption subsidy, we were advocating for a production subsidy,” Osifo said.

He suggested that part of the excess oil revenue should be used to subsidise crude supplied to local refineries, including modular refineries, to enable them to produce cheaper premium motor spirit (PMS).

Osifo argued that reducing production costs for local refiners would ultimately lower petrol prices for consumers across the country.

Petrol prices have risen sharply in recent weeks, climbing from about ₦800 to nearly ₦1,300 per litre in some areas following disruptions linked to tensions involving the United States, Israel and Iran.

Despite calls from labour groups and citizens for the return of fuel subsidies, the Federal Government has maintained that it will not reverse the policy introduced after President Bola Tinubu took office in 2023.

Nigeria’s Coordinating Minister of the Economy and Minister of Finance, Taiwo Oyedele, recently reiterated in Paris that the government would not reintroduce fuel subsidies or impose price controls, insisting on market-driven economic reforms.