The Trade Union Congress has warned that petrol may reach N2000 per litre if urgent measures are not taken to address prevailing challenges in Nigeria’s downstream petroleum sector.
The union said current realities in foreign exchange, import dependence, and market deregulation are pushing fuel prices upward.
Nigeria’s petrol pricing structure has undergone significant changes following the removal of subsidy and the transition to a market-driven regime.
Since then, pump prices have been largely influenced by global oil prices, exchange rate fluctuations, and import costs.
The country remains heavily reliant on imported refined petroleum products despite efforts to boost local refining capacity.
This dependence has exposed the market to external shocks, particularly fluctuations in the naira and global crude benchmarks.
Labour groups, including the TUC, have repeatedly raised concerns over the social and economic consequences of rising fuel prices.
The warning that petrol may reach N2000 builds on earlier calls for intervention to prevent further hardship for citizens.
Speaking on the development, TUC President Festus Osifo said the current trajectory indicates that petrol may reach N2000 per litre if structural issues are not urgently addressed.
He identified foreign exchange instability as a major factor driving up the cost of fuel importation.
Osifo explained that marketers source foreign exchange at high rates, which directly increases landing costs of petrol. These costs are then transferred to consumers under the deregulated pricing framework.
He also highlighted that Nigeria’s limited domestic refining capacity continues to worsen the situation. According to him, until local refineries operate at optimal levels, the country will remain exposed to international price volatility.
The TUC president further noted that logistics, distribution costs, and margins across the value chain contribute to the rising pump price.
He stressed that without coordinated policy intervention, these factors will continue to push prices upward.
Osifo called on the Federal Government to prioritise policies that stabilise the foreign exchange market, support local refining, and ensure transparency in pricing mechanisms.
He emphasised that regulatory oversight is critical to prevent exploitative practices within the sector.
The union also warned that the impact of rising fuel prices extends beyond transportation. Increased energy costs affect food distribution, manufacturing, and overall cost of living, thereby placing additional pressure on households.
Osifo stated that urgent and coordinated action is required to prevent a situation where petrol may reach N2000, noting that such a development would have far-reaching consequences for economic stability and social welfare.
The warning that petrol may reach N2000 underscores the vulnerability of Nigeria’s energy market to macroeconomic pressures.
A sustained increase in fuel prices could accelerate inflation, raise operating costs for businesses, and reduce disposable income for households. This may also affect productivity and economic growth across multiple sectors.
The development highlights the urgency of strengthening domestic refining capacity, improving foreign exchange liquidity, and ensuring effective regulation of the downstream sector.
