By Stanley Onyeka, Lagos
The Lagos Chamber of Commerce and Industry (LCCI), today warned that the sudden hike in the pump price of premium motor spirit (PMS), popularly called petrol, from N568 to N855 per litre would trigger widespread price increases.
In a statement in Lagos, the Director-General, LCCI, Dr Chinyere Almona, said: “A steep price hike would likely trigger widespread price increases, potentially reversing the recent ease in inflation seen in July and leading to another surge in inflation rates.”
She noted that “Balancing the need for fiscal responsibility with the economic impact on citizens is a complex task for the government.
“The impact on businesses will be severe, with fuel prices affecting supply and logistics, power generation, transportation, and factory operations.
“The cost of doing business will skyrocket, prices of goods will rise, and some firms may shut down due to low demand in the face of weakening consumer purchasing power. Of course, this will be followed by job losses.”
According to her, the official price of petrol, now at N855, is a clear indication that the shortfall between the landing cost and the former price of N568 charged by Nigerian National Petroleum Company Ltd. (NNPCL) was being subsidized.
The cost of doing business will skyrocket, prices of goods will rise, and some firms may shut down due to low demand in the face of weakening consumer purchasing power. Of course, this will be followed by job losses.
She argued that completely removing it and subjecting Nigerians to a high price hike presented significant challenges.
Amid all of these LLCI said the operation of the Dangote Refinery, which now produces petrol and diesel for sale, offered a glimmer of hope, adding that this game-changing intervention could restore some stability to the oil and gas sector, which has been grappling with significant distortions in 2024.
The premier Chamber therefore called for a more sustainable approach to support the development of additional local refineries to process crude for local consumption and potential export across Africa.
The statement reads further: “As an immediate intervention, it would be beneficial for the Port Harcourt Refinery to commence operations alongside production from the Dangote Refinery.
“Given the current challenges with importing refined fuel, relying on local production may be the most viable option at this time.
“We recommend sustaining local supplies, with the expectation that demand will eventually align with supply, leading to equilibrium pricing across various sources.”
