The Lagos Chamber of Commerce and Industry (LCCI) has urged the Federal Government to introduce a six-month petrol price reduction programme aimed at cutting domestic pump prices by 15–20 per cent.
The chamber said the proposed programme would complement the government’s planned petrol price stabilisation mechanism, arguing that stabilising prices at elevated levels would not adequately ease the burden of high energy and transportation costs on businesses and households.
In a statement issued by its Director-General, Dr Chinyere Almona, the LCCI acknowledged the economic rationale behind the proposed stabilisation mechanism but maintained that the government must go further by pursuing measurable and sustainable reductions in petrol prices.
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. However, it clarified that the ceiling was intended to moderate fluctuations in supply costs and did not guarantee that petrol would sell at that price at filling stations.
According to the LCCI, the proposed mechanism recognises the economic consequences of sharp increases in energy costs, particularly as rising operating expenses weaken household purchasing power and undermine the competitiveness of Nigerian businesses.
It warned, however, that keeping petrol prices stable at elevated levels would not, by itself, restore business competitiveness or provide meaningful relief to consumers.
“While price stability is desirable, stability at an excessively high price is not sufficient to restore business competitiveness,” Almona said.
She argued that Nigeria needed a framework capable of delivering both price stability and progressive reductions in petrol prices.
The chamber noted that businesses were already grappling with high electricity tariffs, heavy expenditure on alternative power generation, rising logistics costs, expensive financing and other structural constraints.
It said increases in petrol prices further compounded these challenges by raising the costs of transportation, production, distribution and service delivery, with businesses often passing the additional expenses on to consumers.
The LCCI also expressed concern about the proposed arrangement requiring refiners and importers to absorb temporary increases in supply costs and recover the shortfalls when market conditions improve.
While acknowledging that the arrangement could moderate immediate price increases, the chamber warned that it might create deferred cost obligations that could eventually trigger renewed upward pressure on prices if they were not transparently accounted for and recovered within clearly defined limits.
Six-Month Reduction Programme
To complement the stabilisation mechanism, the LCCI proposed a six-month Petrol Price Reduction Programme designed to achieve progressive, measurable and sustainable reductions in domestic pump prices.
Under the proposal, the Federal Government would work with domestic refiners, petroleum marketers, regulators and other stakeholders to secure a 15–20 per cent reduction from the prevailing national weighted-average pump price.
The chamber said the target should be guided by independently verified supply costs, prevailing market conditions and the commercial sustainability of the measures adopted.
It argued that a credible reduction programme must address the underlying costs of petroleum supply and distribution rather than rely solely on measures designed to cushion the immediate effects of fluctuations in international crude oil prices and exchange rates.
The LCCI therefore called for more predictable access to crude oil for domestic refineries under transparent and commercially viable arrangements.
According to the chamber, reliable crude oil supply would reduce procurement uncertainties, foreign exchange exposure and avoidable logistics costs, potentially creating room for more competitive domestic petrol prices.
It also urged the government to work with industry operators to address transportation bottlenecks, improve storage and distribution infrastructure, and eliminate unlawful charges and rent-seeking practices that inflate pump prices.
Alternative Transport, Exchange-Rate Stability
The chamber called for accelerated investment in alternative transportation options, including compressed natural gas (CNG) infrastructure and electric vehicle facilities, to reduce the cost of moving people and goods across the country.
It said expanding these alternatives could gradually reduce dependence on petrol and ease the burden of fuel costs on households and businesses.
The LCCI also identified exchange-rate and macroeconomic stability as essential conditions for achieving sustainable reductions in petrol prices.
It noted that petroleum supply costs remained sensitive to movements in the exchange rate and international oil prices, adding that reduced foreign exchange volatility would improve price predictability and enable businesses to plan more effectively.
However, the chamber cautioned against implementing a stabilisation mechanism that could undermine the commercial viability of refiners and importers, discourage investment or trigger fuel shortages.
It called for clear rules governing the mechanism, including the conditions for its introduction and withdrawal and how accumulated cost obligations would be treated.
The LCCI maintained that any price-modulation framework must be transparent, commercially sustainable and designed to prevent open-ended financial liabilities for market participants.
The proposal comes amid renewed government efforts to cushion Nigerian households and businesses against rising global petroleum costs.
On October 9, 2026, the Presidency announced that NNPC Retail would forgo its petrol retail profit margin for an initial 30-day period as part of measures to ease the burden of rising fuel costs on consumers.
Against this backdrop, the LCCI argued that stabilising petrol prices should go hand in hand with measures to reduce the domestic costs of refining, transporting and distributing petroleum products.
It urged the Federal Government to strike a balance between protecting consumers and businesses from sudden market shocks and establishing a credible pathway towards lower energy costs.
The chamber maintained that the success of the proposed policy should ultimately be measured by its ability to deliver tangible reductions in petrol prices, lower operating costs for businesses and provide meaningful relief to consumers.