The Lagos Chamber of Commerce and Industry, LCCI has warned that the recent hike in the price of fuel from N568 to N855 would trigger widespread price increases. The industry lamented that the trend will potentially reverse the recent ease in inflation.
This was disclosed by the Director General, LCCI, Dr. Chinyere Almona, on Wednesday.
She stated that the development would lead to increase in price of everything in the market. The DG also, stressed that the impact of the hike on business would be very severe.
Almona pointed out that the official price of petrol, now at N855, was a clear indication that the shortfall between the landing cost and the former price level of N568 charged by Nigerian National Petroleum Corporation Ltd, NNPCL had been reduced.
The DG, however, said that completely removing it and subjecting Nigerians to a significant fuel price hike presented significant challenges.
She 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.
“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.”
The LCCI DG, however, expressed optimism at the roll out of fuel by the Dangote Refinery. She described it as a glimmer of hope.
Almona noted that this game-changing intervention could restore some stability to the oil and gas sector.
The LCCI DG, therefore, advocated a more sustainable approach to support. She called for the development of additional local refineries to process crude for local consumption and potential export across Africa.
Follow us for more news on our WhatsApp News Channels @
https://whatsapp.com/channel/0029VaC505jB4hdZ5Yx9g82U
