By David Akinmola
The Centre for the Promotion of Private Enterprise (CPPE) has called for targeted relief measures for households and businesses as higher petrol prices threaten to worsen living costs and increase operating expenses across the economy.
The organisation said the latest increase in the price of Premium Motor Spirit (PMS), commonly known as petrol, could trigger fresh pressure on transportation, food prices and other essential goods and services, particularly for low-income households and small businesses already grappling with high operating costs.
CPPE said the impact of higher petrol prices would extend beyond the pump, as businesses that depend heavily on petrol-powered generators and vehicles would face increased expenditure, with much of the additional cost likely to be transferred to consumers through higher prices.
It warned that the development could weaken household purchasing power and further constrain consumer demand, with small and medium-sized enterprises particularly vulnerable to the combined effects of high energy, logistics and financing costs.
The private-sector advocacy group therefore urged the Federal Government to introduce targeted interventions to cushion the impact on vulnerable households and productive businesses rather than adopting broad-based subsidies that could impose additional pressure on public finances.
According to CPPE, such measures should prioritise public transportation, food distribution, small businesses and other sectors where fuel costs have a direct and significant impact on production and distribution.
The organisation also called for policies that would accelerate the development of alternative energy sources and reduce businesses’ dependence on petrol and diesel for power generation.
It said improving domestic refining capacity, strengthening competition in the downstream petroleum sector and ensuring greater transparency in the pricing system remained critical to achieving sustainable stability in the petroleum market.
The CPPE noted that while market-based pricing of petrol could encourage investment and reduce the fiscal burden associated with subsidies, government must ensure that the transition does not impose excessive hardship on households and businesses.
It stressed that targeted relief should be accompanied by measures to boost domestic production, improve logistics and reduce other structural costs driving inflation.
The group warned that without complementary measures, higher fuel prices could undermine recent gains in moderating inflation and further weaken the purchasing power of Nigerians.
For businesses, it said the priority should be to create an environment where rising energy costs do not translate into a continuous cycle of higher production costs, higher prices and weaker demand.
The CPPE therefore urged the government to focus on interventions that would lower the cost of doing business while protecting vulnerable Nigerians from the immediate effects of higher petrol prices.
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