The Lagos Chamber of Commerce and Industry LCCI, has applauded the recent reduction in petrol prices facilitated by the Dangote Refinery.
The LCCI said that the development reflects a significant demonstration of capacity and readiness to meet local petrol demand, offering much-needed relief amid prevailing economic challenges.
In a statement, the DG, LCCI, Dr Chinyere Almona said that the Dangote Refinery’s approach to address energy challenges deserves widespread recognition and encouragement as it sets a benchmark for excellence and innovation in Nigeria’s energy sector.
Almona said that beyond the gesture by Dangote Refinery on fuel price reduction, Nigerians can actually begin to expect a lower price for petrol if the government decides to sustain the Naira for crude supply to local refineries to refine oil for the Nigerian market.
“The controversies surrounding business relationships in the oil and gas sector are gradually dissipating, bringing a sense of stability to the industry. However, the confusion and disruptions experienced in recent months have significantly impacted the economy and may require time to resolve fully. Regrettably, these disruptions were avoidable. We emphasise that the oil and gas sector is crucial to the nation’s economic stability and growth. It is, therefore, imperative that the sector is managed with greater efficiency and foresight to prevent such challenges in the future.”
The Chamber said that the recent increase in fuel prices had left businesses struggling to cope with the escalating energy costs, rendering many products uncompetitive due to unaffordable consumer prices.
Energy price hikes remain a significant driver of Nigeria’s headline inflation, which stood at 33.88% as of October 2024, further straining the economy and households.
The Chamber is, however, optimistic that with local fuel becoming more competitive and readily available, Nigeria can completely discontinue fuel importation.
“We can only begin to imagine the massive savings for the government and a lessening of the burden on the citizens when we begin to save billions of dollars from the total removal of subsidies, zero debt to fuel importers, and no more queues and loss of man-hours at our filling stations. This can actually be a reality if the government can wield the political will and deploy the appropriate economic policies to implement the reforms in the oil and gas sector.”
The LCCI then stated that a full deregulation and implementation of the Petroleum Industry Act can create a better-managed oil and gas sector capable of attracting needed investments, creating more jobs as more operators enter the market, and boosting oil production output, which means less pressure on foreign currency demand and more foreign exchange earnings to the government.
Hauwa Abu
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