LCCI urges FG to set up pricing window to mitigate impact of petrol deregulation

The Lagos Chamber of Commerce and Industry (LCCI) has called on the Federal Government to set up a social pricing window for vulnerable Nigerians to mitigate the impact of its deregulation policy on that segment of the society.

Muda Yusuf, director-general, LCCI, told journalists in Lagos that the government at all levels must prioritise mass transit to reduce the impact of the removal of subsidy on Premium Motor Spirit (PMS) on transportation cost.

Yusuf noted that the removal of subsidy on PMS also known as petrol would cause some challenges which could be for a short term if the right programmes are put in place.

He said: “The deregulation policy is something that should be sustained and we should be looking at how we can mitigate the short term challenges on Nigerians.

“In the short term, we can look at a social pricing window for the vulnerable segment of society.

“The way we think this can work is to designate all the Nigerian National Petroleum Corporation (NNPC) stations and provide a social pricing mechanism in NNPC stations alone.

“The Federal Government can set aside a certain amount to subsidise in these windows and it should not be more than 10 per cent of the total consumption of fuel in the short term before we transit into full deregulation.

“For instance, if our total consumption is 50 million litres, we can earmark like five million litres to serve these vulnerable groups through the NNPC stations which we have all over the country.”

According to him, other petrol stations should be allowed to function fully within the deregulation framework and provide services for more economically empowered persons.

He said vulnerable people who can afford to queue for some hours can use the NNPC stations but those who can pay can go straight to other stations to buy fuel.

He added that this is a model that Nigeria can consider and it will also bring some comfort to organised labour that something is being done immediately to assist the vulnerable groups in the society.