The Lagos Chamber of Commerce and Industry (LCCI) has proposed a six-month petrol price reduction programme aimed at cutting pump prices by between 15 and 20 per cent to ease the financial pressure on Nigerian businesses and households.

The Director-General of the chamber, Dr Chinyere Almona, made the proposal in a statement, urging the Federal Government to work with domestic refiners, petroleum marketers, regulators and other stakeholders to achieve gradual, measurable and sustainable reductions.

Almona welcomed the government’s proposed petrol price stabilisation mechanism, including a ceiling of ₦1,350 per litre on the ex-gantry or landing cost of petrol, subject to monthly reviews and public disclosure.

She described the proposal as recognition of the economic impact of sharp fluctuations in energy prices but warned that stabilising prices at elevated levels would not provide sufficient relief to businesses.

According to her, Nigerian enterprises are already facing high electricity tariffs, expensive alternative power sources, rising logistics expenses and costly financing, all of which affect production, distribution and competitiveness.

She said the proposed stabilisation mechanism could protect businesses from sudden price increases but would not automatically guarantee lower pump prices.

The LCCI chief also warned that requiring refiners and importers to absorb temporary increases in costs and recover them when market conditions improve could create deferred obligations that might eventually put renewed upward pressure on prices if not transparently managed.

To support the proposed reduction programme, the chamber called for more predictable and commercially viable crude oil supplies to domestic refineries. It said reliable supplies could reduce procurement uncertainty, foreign exchange exposure and avoidable logistics expenses.

The LCCI also recommended accelerating alternative transportation options, including compressed natural gas (CNG) and electric vehicle infrastructure, to reduce the cost of moving people and goods.

Other measures proposed include addressing transport bottlenecks, improving storage and distribution facilities, eliminating unlawful charges and maintaining exchange-rate and macroeconomic stability.

Almona stressed that any price-smoothing arrangement should have clear rules governing its implementation, the recovery of accumulated costs and the circumstances under which it would begin or end.

She cautioned against a system that imposed unlimited losses on refiners and importers, discouraged investment or triggered fuel shortages.

The chamber maintained that the success of the programme should be measured by actual reductions in petrol expenditure, transport and distribution costs, alongside improved business competitiveness and meaningful relief for consumers.

It added that Nigeria could not indefinitely shield its petroleum market from international oil price movements, making the reduction of domestic supply and distribution costs essential to achieving lasting relief.