According to the lawmakers, the hike is threatening job security, increasing inflation, and deepening the already challenging living conditions in the country.
In a move to address the root cause of the problem, the House also urged the Nigerian National Petroleum Company Limited (NNPCL) and the Ministry of Petroleum Resources to prioritize increasing local refining capacity.
They argued that improving domestic refining would help stabilize fuel prices, reduce dependency on imports, and mitigate future price hikes.
Additionally, the lawmakers called on the Central Bank of Nigeria (CBN) to implement monetary policies aimed at mitigating the inflationary pressures caused by the rising cost of fuel.
The lawmakers emphasized the need for the CBN to stabilize the Naira and control cost-of-living increases, which have worsened since the subsidy removal.
Their concerns align with a warning issued by the World Bank in its October Africa Pulse report, which highlighted the potential economic fallout from further fuel price hikes.
The report noted that while the inflation effects of the Naira’s devaluation and the removal of gasoline subsidies in 2023 had begun to subside, the recent 40-45% increase in fuel prices could reverse these gains and lead to further economic distress.
“While the inflationary effects of a weakened Naira in the first months of this year and the removal of the gasoline subsidy in the second half of 2023 appeared to be gradually subsiding, a further increase in gasoline prices by 40-45 percent in September may reverse the disinflationary trend,” the World Bank report warned.
Currently, the price of cooking gas has also surged, with a recent market survey putting the cost of 1 kg of cooking gas at ₦1,500. This increase has added to the financial strain on many households, intensifying the need for urgent government intervention.
With these developments, the House of Representatives stressed the urgency of reversing the fuel hikes.
They argue that without immediate action, the economic situation could deteriorate further, pushing more Nigerians into poverty and prolonging the hardship faced by millions of citizens.