Fuel Price May Hit N2,000 Per Litre Amid Global Oil Shock — TUC Warns

The Trade Union Congress of Nigeria (TUC) has warned that the pump price of Premium Motor Spirit (PMS), popularly known as petrol, could surge to as high as N2,000 per litre amid rising global and domestic economic pressures.

The warning was issued on Thursday in Abuja by TUC President, Festus Osifo, who attributed the potential increase to escalating geopolitical tensions in the Middle East, particularly involving Iran, Israel, and the United States, which he said have disrupted global oil supply chains and pushed up crude oil prices.

According to him, the impact of the global oil market instability is already worsening economic hardship in Nigeria, with petrol prices in some locations reportedly approaching the N2,000 mark.

Osifo noted that Nigerian workers are already facing severe economic strain, adding that the effects of rising fuel costs are being felt across transportation, manufacturing, and the general cost of living.

He explained that the persistent increase in diesel prices has also raised production costs, which are ultimately passed on to consumers through higher prices of goods and services.

To address the situation, the labour leader urged the Federal Government to consider subsidising crude oil supplied to local refineries using excess revenue generated when global oil prices exceed the budget benchmark. He argued that such a policy would reduce refining costs and lead to a decline in the prices of petrol, diesel, and aviation fuel in the short term.

Osifo, who also serves as a leader of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), maintained that subsidising production rather than consumption would reduce the risks of inefficiency and abuse associated with previous subsidy regimes.

He further identified the depreciation of the naira as a major driver of fuel price increases, stressing that exchange rate stability remains critical to controlling inflation.

As a long-term solution, he called for accelerated investment in Compressed Natural Gas (CNG) infrastructure across the country, noting that wider adoption of CNG-powered vehicles could significantly reduce Nigeria’s dependence on petrol.

However, he warned that inadequate refuelling infrastructure remains a major challenge to the initiative and urged the government to fast-track the establishment of CNG stations along major transport routes.

Osifo also expressed concern over the country’s security situation, describing ongoing killings in parts of Nigeria as unacceptable, and called for better equipping of security agencies to address rising insecurity.

On workers’ welfare, he said labour unions are engaging both government and employers to cushion the impact of the economic crisis, adding that recommendations on fuel pricing reforms and CNG expansion would be submitted to the Presidency.