The Lagos Chamber of Commerce and Industry (LCCI) has called on the Federal Government to introduce a six-month programme to reduce petrol pump prices by 15 to 20 per cent, in a move aimed at easing business costs and providing relief to consumers.
The chamber made the recommendation while responding to the government’s proposed petrol price-stabilisation mechanism, which seeks to establish a ceiling of ₦1,350 per litre on the ex-gantry or landing cost of petrol, subject to monthly reviews and public disclosure.
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The Director-General of the LCCI, Dr Chinyere Almona, welcomed the proposed intervention but warned that stabilising petrol prices at an already high level would not be enough to restore business competitiveness.
“Our position is clear: we welcome the government’s intervention to moderate price volatility, but the next step must be a credible plan to bring petrol prices down progressively, sustainably and transparently,” Almona said.
She explained that Nigerian businesses continue to face high electricity tariffs, heavy spending on alternative power generation, rising transportation and logistics costs, and expensive financing. According to her, these challenges are increasing the cost of production, distribution and service delivery.
The chamber also expressed concern that requiring refiners and importers to absorb temporary increases in supply costs could create deferred financial obligations, potentially putting renewed pressure on petrol prices if the arrangement is not managed transparently.
Proposed Solutions
To achieve the proposed price reduction, the LCCI recommended improving domestic refineries’ access to crude oil through reliable and commercially viable arrangements.
It also called for greater investment in alternative transportation options, including compressed natural gas and electric vehicles, alongside improvements in storage and distribution infrastructure to reduce avoidable costs.
The chamber further urged the government to promote exchange-rate stability and establish clear rules for managing the financial obligations of refiners and importers, warning that an unsustainable arrangement could discourage investment or contribute to fuel shortages.
The proposed six-month programme remains a recommendation by the LCCI. Its implementation would depend on government action and consultations with refiners, petroleum marketers, regulators and other relevant stakeholders.
The chamber said a sustainable reduction in petrol prices would help ease operating costs for businesses and reduce the pressure that high energy and transportation expenses place on consumers.
