LCCI proposes 20% petrol price cut in six months

…Welcomes FG’s stabilisation plan, seeks lower energy, logistics costs

By Yinka Kolawole

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 on Sunday, LCCI Director-General, Dr Chinyere Almona, urged the Federal Government to work with domestic refiners, petroleum marketers, regulators and other stakeholders to achieve progressive, measurable and sustainable reductions in petrol prices.

Almona commended the Federal Government’s proposed petrol price stabilisation mechanism, describing it as timely amid rising energy and transportation costs that have continued to pressure business operations, household purchasing power and the competitiveness of Nigerian enterprises.

The Chamber welcomed the proposed ceiling of ₦1,350 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 lower 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 reduce 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.

Recommendations for lower costs

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

It also called for the accelerated deployment of alternative transportation options, including compressed natural gas (CNG) and electric vehicle infrastructure, to reduce the cost of moving goods and people across the country.

Other recommendations include addressing transportation bottlenecks, improving storage and distribution infrastructure, eliminating unlawful charges, and maintaining exchange-rate and macroeconomic stability.

Almona further stressed the need for clear rules governing the price-stabilisation mechanism to prevent open-ended losses for refiners and importers, discourage investment or trigger fuel shortages.

She said Nigeria could not indefinitely insulate its petroleum market from international oil price movements, adding that sustainable relief required reducing domestic costs that amplify the impact of global market fluctuations.

The LCCI maintained that the ultimate test of the policy should be lower petrol expenditure for businesses, reduced transportation and distribution costs, improved competitiveness and meaningful relief for consumers.

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