The Trade Union Congress (TUC) has proposed a “production subsidy” for local and modular refineries to help reduce the rising cost of petrol in Nigeria.

The Trade Union Congress (TUC) has proposed a “production subsidy” for local and modular refineries to help reduce the rising cost of petrol in Nigeria.

TUC President Festus Osifo said the Federal Government should use part of the excess revenue earned from crude oil sales to subsidise crude supplied to local refineries.

According to him, the move would allow refineries to produce cheaper premium motor spirit (PMS) without returning to fuel subsidy on consumption.

Osifo said petrol prices have risen from about N800 to as high as N1,300 in some areas following recent Middle East tensions.

The Federal Government has repeatedly stated that it will not reintroduce petrol subsidy, insisting the policy creates economic distortions.