See the solution proposed to reduce fuel price at filling stations

• LCCI has proposed that the federal government of Nigeria sell crude oil sales to local refiners at N1,000/$ exchange rate
• The group believes this will help reduce the cost of petrol production costs and reduce fuel prices at the pump
• Fuel at filling stations sells at N1,030 per litre at NNPC retail stations, while independent marketers sell at N1,200, N1,300 depending on locations

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends

The Lagos Chamber of Commerce and Industry (LCCI) the Federal Government to offer crude oil to local refiners at an exchange rate of N1,000 per dollar.

According to LCCI, the move will help address the surging fuel prices at filling stations across Nigeria.

LCCI believes drop in exchange rate can solve naira crises Photo credit: Bloomberg/contributor
Source: Getty Images

LCCI President Gabriel Idahosa, in a statement, stressed that the exchange rate for crude oil supplied will lead to a reduction in petrol prices at the pump.

Idahosa explained:

“Crude oil supplied to refineries in naira should be sss at an exchange rate of N1,000 to one USD. This would significantly lower the cost of petrol for end users, thereby reducing logistics and transportation expenses. "The ripple effect would stimulate economic activity and help alleviate the current financial hardships faced by Nigerians."

He further added that this policy shift would also contribute to reducing food inflation, as transport costs are a significant component of food production and delivery expenses.

Legit.ng reported that the Nigerian National Petroleum Company Limited (NNPCL) recently hiked the pump price of Premium Motor Spirit (PMS) from N897 to N1,030 per litre, marking the second price increase within a month.

Marketers speak on Dangote petrol price

Legit.ng earlier reported that oil marketers in Nigeria would buy petrol directly from Dangote Refinery. However, they would face price challenges.

The reason was a price difference between Dangote petrol price and imported PMS.

While the Dangote Refinery can supply much of Nigeria’s domestic petrol needs, the government strictly controls pricing via the Nigerian National Petroleum Company Limited (NNPC), creating a significant hurdle for marketers.

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Source: Legit.ng