LCCI proposes 20% petrol price cut in 6-month programme

The Lagos Chamber of Commerce and Industry (LCCI) has proposed a six-month petrol price reduction programme targeting a 15 to 20 per cent cut in pump prices to ease the burden of high energy and transportation costs on Nigerian businesses and households.

In a statement, Director-General of LCCI, Dr. Chinyere Almona, said the Federal Government should work with domestic refiners, petroleum marketers, regulators and other stakeholders to achieve progressive, measurable and sustainable reductions in petrol prices.

Almona, while commending the Federal Government’s proposed petrol price-stabilisation mechanism, said the initiative was timely, given the pressure of rising energy and transportation costs on business operations, household purchasing power and the competitiveness of Nigerian enterprises.

LCCI welcomed the proposed ceiling of N1,350 per litre on the ex-gantry or landing cost of petrol, subject to monthly reviews and public disclosure, describing it as recognition of the economic consequences of excessive volatility in energy prices.

However, Almona warned that stabilising petrol prices at elevated levels would not provide sufficient relief to businesses already grappling with high electricity tariffs, alternative power costs, expensive financing and rising logistics expenses.

She said the proposed mechanism could cushion businesses against sudden price increases but would not necessarily guarantee reductions in pump prices.

According to her, the government should assess the initiative not only by its ability to moderate price volatility but also by its capacity to lower operating costs and improve economic welfare.

The LCCI chief also cautioned that requiring refiners and importers to absorb temporary cost increases and recover them when market conditions improve could create deferred obligations that might eventually push prices upwards if not transparently managed.

To support the proposed six-month programme, the Chamber recommended that the government ensure predictable and commercially viable crude oil supplies to domestic refineries to reduce procurement uncertainties, foreign exchange exposure and avoidable logistics costs.