Home Lagos LCCI urges FG to increase fuel price

LCCI urges FG to increase fuel price

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The Lagos Chamber of Commerce and Industry (LCCI), has backed the call by the World Bank that the federal government should increase the pump price of Premium Motor Spirit popularly called petrol to N750/litre.

The World Bank, on Wednesday, said the FG may still be paying for petrol subsidies as fuel prices in Nigeria are currently not cost-reflective. It said Nigerians should pay about N750 per litre as against the current price of N650 in some places.

The LCCI in a statement by its Director General, Dr Chinyere Almona, noted that it shares the concerns of the bank about the Nigerian economy despite the reforms carried out so far including fuel subsidy removal, liberalisation of the foreign exchange market, removal of 43 items from FX restrictions and tightening of monetary policy.

“On the partial return of subsidy, the chamber supports the views of the World Bank and the need to adjust petrol prices to reflect market conditions. Over the years, the chamber has consistently advocated for the full deregulation of petroleum products. We are, however, worried about the monopoly in the importation and supply of the products by NNPC and the lack of transparency in the pricing of the products,” it said.

The LCCI also called for far-reaching reforms and commitment on the part of the government to improve transparency and a comprehensive strategy that will improve the performance of the Nigerian National Petroleum Corporation (NNPC) and other Government-Owned Enterprises (GOEs), including privatisation options.

“However, we do not support the immediate increase in value-added tax (VAT) due to its cost impact on consumers in the immediate term,” it said.

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