The Trade Union Congress (TUC) has rejected the Federal Government’s proposed 15 per cent import duty on Premium Motor Spirit (petrol), warning that it would worsen the already difficult economic conditions for Nigerians struggling with high fuel prices and inflation.
Speaking on Channels TV’s TUC Half Hour, the union’s president, Festus Osifo, said the policy could lead to another surge in pump prices since Nigeria still relies heavily on imported fuel. He questioned the logic of imposing such a tax when the nation’s refineries remain inactive.
“The first reaction was a no. Why impose a tax when our refineries are not working?” Osifo asked.
He noted that the Dangote Refinery already operates within a free trade zone and enjoys import duty waivers, meaning independent importers would likely pass the new costs on to consumers.
Osifo called for transparency on how the duty would be applied, stressing the need for clear guidelines to prevent confusion. He insisted that labour and industry stakeholders must be properly consulted before the policy is enforced.
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He added that both the TUC and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) are reviewing the details before issuing a final position.
President Bola Tinubu had approved the 15 per cent tariff in an October 21 letter to the Federal Inland Revenue Service and the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
Government projections indicate the duty could raise the landing cost of petrol by about ₦99.72 per litre, potentially pushing pump prices in Lagos to around ₦964.72 per litre.
Officials say the policy aims to boost local refining capacity and support modular refineries in states such as Edo, Rivers, and Imo.
However, experts warn that without relief measures, the move could deepen the financial strain on households already grappling with inflation and the aftermath of subsidy removal.
