Come up with credible plans to bring down petrol price, LCCI urges FG

•Calls for six-month plan to reduce pump price

Lagos Chamber of Commerce and Industry (LCCI) has tasked the Federal Government to come up with a credible plan to progressively, sustainably and transparently bring petrol prices down.

It also called for a six-month petrol price reduction programme that would reduce pump price and the costs of doing business in the country.

The chamber made the calls, in a statement, by its Director General, Dr Chinyere Almona, while reacting to the government’s recent plans at moderating price volatility.

Commending the government’s proposed petrol price-stabilisation mechanism, the chamber noted that the intervention had become imperative since  rising energy and transportation costs had begun to put severe pressure on businesses, weakened household purchasing power and undermined the competitiveness of the nation’s enterprises.

 It described the proposal to establish a ceiling of ₦1,350 per litre on the ex-gantry or landing cost of petrol, as an acknowledgement by the government, of the significant consequences of excessive volatility in energy prices for the wider economy.

LCCI, however, noted that while such step was commendable, the next phase should be for government to have a concrete plan at bringing the price of the commodity down.

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The Chamber stated that while the nation’s businesses had demonstrated considerable resilience in the face of high operating costs, in the past few years, resilience alone, it added, would not sustain competitiveness indefinitely.

“We wish to see the ultimate impact of these policy interventions bring about Nigerian businesses spending less on petrol, transportation and distribution costs moderating, and consumers experiencing meaningful relief,” the Chamber stated.

It added that while price stability remains desirable, achieving such stability at an excessively high price would not restore business competitiveness since Nigerian businesses need sustained price reductions to restore competitiveness and protect jobs.

“The Chamber is concerned that the proposed arrangement, in its present form, may cushion businesses against sudden increases without necessarily bringing down the already elevated cost of energy.

 “Nigerian businesses are contending with high electricity tariffs, substantial expenditure on alternative power generation, rising logistics costs, expensive financing and other structural constraints.

“Petrol price increases compound these pressures, affecting distribution, transportation, production and the cost of delivering goods and services,” it stated.