The Federal House of Representatives has called on the Federal Government to reverse the recently increased prices of premium motor spirit (PMS), otherwise known as petrol and cooking gas.
The House is specifically asking the government to reverse the recent price hikes for premium motor spirit (PMS), also known as petrol, and cooking gas, also called liquefied petroleum gas (LPG)
This call was a sequel to a resolution to a motion by the Minority Leader,Hon Kingsley Chinda (PDP-Rivers) at plenary in Abuja on Wednesday and in response to the increasing financial burden on Nigerians due to skyrocketing energy costs .
Hon Kingsley Chinda, while moving the motion, stressed the need for immediate interventions targeted at price &:tax reductions, or subsidies on cooking gas, also called liquefied petroleum gas (LPG) for low-income households across the federation.
He noted that Nigeria, as an oil-producing nation, had historically relied on petroleum products and cooking gas (LPG) as essential sources of energy for both domestic and industrial purposes.
The lawmaker stated that in recent months, the prices of petrol and cooking gas had skyrocketed and continued to do so, thus creating an unsustainable financial burden on ordinary Nigerians and exacerbating the cost of living.
According to him, the removal of fuel subsidies, coupled with global oil price volatility and the depreciation of the naira, had contributed significantly to the rising cost of petrol and cooking gas for households.
“Nigerians are worried that the escalating fuel and gas prices are impacting on the transportation, food, essential goods and healthcare as well as increasing inflation.
“Further push on the prices of these two items had exposed many families to deeper financial hardship.
“Businesses, particularly small and medium enterprises (SMEs), are struggling to manage their operational costs due to increased fuel prices, threatening economic stability and job security.
“The Federal Government has the refining capacity to address some of these issues but has yet to deliver significant results in this regard.
“The rising cost of petrol and cooking gas poses a significant threat to the livelihood of millions of Nigerians and unchecked inflationary pressure caused by the increased prices can lead to social unrest, increased poverty rates, and negative long-term economic effects,” he said.
Chinda reinstated that unless urgent and pragmatic steps were taken to control the rising cost of petrol and cooking gas, the nation would go into economic crisis, leading to negative outcomes like increased crime and mortality rates.
Consequently, the house called on Nigerian National Petroleum Corporation Limited (NNPCL), Ministry of Petroleum Resources and other relevant agencies to expedite the repair/maintenance of domestic refineries.
According to the lawmakers, an increase in local refining capacity will serve as a stop-gap measure to reduce the dependence on imported refined petroleum products.
The Green Chambers also urged the Central Bank of Nigeria (CBN) to implement monetary policies that would mitigate the adverse effects of petrol price hikes on inflation, particularly with regard to essential goods and services.
The Federal house of Representatives urged the federal government to explore alternative energy sources and diversify the country’s energy mix to reduce reliance on petrol and gas by promoting renewable energy solutions that were more sustainable and affordable.
The lawmakers urged state governments to adopt policies that could alleviate the financial burden on the citizens, such as waiving taxes or levies on transportation and goods affected by high petrol costs.
In his ruling, The Federal House of Representatives Speaker ,Hon. Tajudeen Abbas mandated the Committees on Petroleum Downstream and Legislative Compliance to ensure compliance and report back to the house within two weeks for further legislative actions.
*Reasons Behind the Call:*-
_Rising Costs_: The prices of petrol and cooking gas have continued to increase, exacerbating the cost of living for ordinary Nigerians ¹
.- _Economic Impact_: The high energy costs are affecting transportation, food, essential goods, and healthcare, leading to increased inflation ¹.-
_Business Struggles_: Small and medium enterprises (SMEs) are struggling to manage operational costs due to high fuel prices, threatening economic stability and job security
¹.*Recommended Solutions:*-
_Increase Local Refining Capacity_: The House suggests expediting the repair and maintenance of domestic refineries to reduce dependence on imported refined petroleum products ¹
– _Monetary Policies_: The Central Bank of Nigeria (CBN) is urged to implement policies mitigating the adverse effects of petrol price hikes on inflation ¹.-
_Alternative Energy Sources_: The government is encouraged to explore alternative energy sources and promote renewable energy solutions
