The Lagos Chamber of Commerce and Industry (LCCI) has urged the Federal Government to introduce a six-month programme to reduce petrol pump prices by 15 to 20 per cent, arguing that stabilising fuel prices alone will not provide sufficient relief to Nigerian households and businesses.
The chamber made the proposal as the Federal Government considers a petrol price-stabilisation mechanism aimed at limiting the impact of fluctuations in international oil prices and foreign exchange rates.
In a statement issued on Sunday, October 11, 2026, LCCI Director-General, Dr Chinyere Almona, called for coordinated action involving the government, domestic refiners, petroleum marketers and regulators to achieve gradual and sustainable price reductions.
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The chamber welcomed the government’s proposed arrangement, which includes a ceiling of ₦1,350 per litre on petrol’s ex-gantry or landing cost, subject to monthly reviews and public disclosure.
However, Almona warned that keeping petrol prices stable at elevated levels would not adequately address the financial pressure facing Nigerian businesses.
She noted that companies are already dealing with high electricity tariffs, expensive alternative power sources, rising transportation expenses and costly financing.
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According to the LCCI, these challenges increase production and distribution costs, weaken business competitiveness and reduce consumers’ purchasing power.
The chamber therefore wants the government to measure the success of its intervention by whether it delivers lower pump prices and reduces the cost of doing business.
Its proposed six-month programme would target a 15 to 20 per cent reduction from the prevailing national weighted-average petrol price, subject to verified supply costs and prevailing market conditions.
To make the proposed reduction achievable, the LCCI called for predictable and commercially viable crude oil supplies to Nigerian refineries.
The chamber believes that reducing uncertainty around crude procurement, foreign exchange exposure and transportation could help lower the cost of producing and supplying petrol locally.
It also urged the government to improve storage and distribution infrastructure, address transportation bottlenecks and eliminate unlawful charges that increase the cost of moving petroleum products.
These measures, it said, should complement the proposed price-stabilisation mechanism rather than leave consumers dependent on temporary relief.
The LCCI also recommended faster development of compressed natural gas (CNG) and electric vehicle infrastructure as part of a broader strategy to reduce transportation costs.
Greater access to alternative energy sources could help transport operators and businesses reduce their dependence on petrol, although the benefits would depend on infrastructure availability, affordability and adoption.
The chamber further stressed the importance of exchange-rate stability and clear rules for the government’s proposed arrangement.
It warned that requiring refiners and importers to absorb temporary increases in costs could create financial obligations that might eventually push prices upwards if they were not transparently managed.
The LCCI acknowledged that the proposed stabilisation mechanism could protect businesses and households against sudden fuel price increases. However, it cautioned that the arrangement would not automatically guarantee cheaper petrol.
The chamber also warned against measures that could undermine refiners’ commercial viability, discourage investment or contribute to fuel shortages.
It argued that Nigeria cannot permanently shield its petroleum market from international oil price movements without addressing the domestic factors that amplify their impact.
For the government, the challenge is to balance price stability, reliable fuel supply and commercially sustainable operations while delivering meaningful savings to consumers.
The LCCI maintained that a successful policy should ultimately reduce petrol expenditure, lower distribution costs and improve the competitiveness of Nigerian businesses.
Its proposal places the focus on a measurable reduction in fuel prices over six months, rather than stabilisation alone, as households and enterprises continue to face pressure from high operating costs.
