The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, NACCIMA, has expressed its concern over the recent increase in petrol pump prices.

The National President of the association, Mr Dele Oye, made this known in a statement on Wednesday in Lagos.

Oye said that the prices, which had reached N998 and N1,030 per litre respectively, were placing a strain on businesses and households across the country.

He spoke on the potential economic consequences of the price hike, warning that the increase could lead to higher transportation costs, exacerbate inflation and severely impact small and medium-sized businesses.

According to him, the decision, influenced by several underlying factors, warranted careful examination of its potential repercussions on the economy, particularly in the realms of pricing for goods, services and transportation.

“With transportation costs directly tied to fuel prices, this increase will serve as a catalyst for higher freight charges.

“Given that fuel is a primary driver of inflation, the rise in petrol prices will exacerbate the already high inflation rate in Nigeria.

“Households will find themselves paying more not only for fuel, but also for everyday goods and services, prompting a vicious cycle of rising costs and economic hardship.

“The recent fuel price increase will have a profound impact on micro and nano businesses, many of which rely heavily on petrol generators to power their operations,” he noted.