Fuel price: Chamber of Commerce warns of severe impact on goods, businesses

The Lagos Chamber of Commerce and Industry, LCCI, has warned that the recent fuel price hike from N568 to N855 will lead to a surge in prices across the board.

According to Dr. Chinyere Almona, Director General of LCCI, the increase will have a severe impact on businesses and result in higher prices for goods and services in the market.

In a statement released on Wednesday, Almona noted that the new petrol price of N855 indicates that the gap between the landing cost and the previous price of N568, set by the Nigerian National Petroleum Corporation Ltd, NNPCL, has been narrowed.

However, she emphasized that completely eliminating the shortfall and imposing a significant fuel price hike on Nigerians poses substantial challenges.

Almona's statement suggests that the fuel price increase will have far-reaching consequences for the economy, leading to increased costs of production, higher inflation, and reduced purchasing power for consumers.

“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,” she said.