The Trade Union Congress (TUC) has called on the Central Bank of Nigeria (CBN) and the Nigeria Customs Service (NCS) to grant the Nigerian National Petroleum Company Limited (NNPCL) a special foreign exchange rate.

TUC President Festus Osifo, in an interview with Channels Television, said the special foreign exchange rate would significantly lower the cost of petrol importation and gradually reduce fuel prices across the country.

Osifo said the current official exchange rate of ₦1,600/$ is unsustainable and has led to an increase in fuel prices.

He argued that “if NNPCL is granted a special forex rate of about ₦1000/$, the cost of petrol importation will crash, and fuel prices will drop to around ₦600.”

Osifo, who is also the President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), attributed the high fuel prices primarily to the devaluation of the naira, rather than the removal of the petrol subsidy in May 2023.

He added that petrol would be selling at around ₦350 per litre if the naira had not been devalued, noting that “the ultimate elephant in the room is devaluation.”

Osifo also claimed that, despite recent increases in petrol pump prices, NNPCL continues to provide subsidies.

“If you give a special rate to NNPC, you don’t need to pay for subsidy anymore,” Osifo said, citing the example of Dangote Refinery, which was granted a special rate to sell petrol.”

According to him, the special rate would enable marketers to purchase petrol from Dangote Refinery at a reduced rate, leading to a decrease in fuel prices.