House of Representatives, Tuesday, resolved to investigate the sharp increase in the price of diesel also known as AGO.
It therefore mandated its Committees on Petroleum Resources (Downstream), Petroleum Resources (Upstream), and Gas Resources to handle the assignment with a view to ensuring that a reasonable price is fixed to alleviate the sufferings of Nigerians.
The resolution followed the consideration of a motion presented at the plenary by Hon. Chike John Okafor, (APC, Imo)Moving the motion, Okafor recalled that Nigeria Mainstream and Downstream Petroleum Regulatory Authority (NMDPRA) was created in August 2021 in line with the Petroleum Industry Act with the mandate to provide effective regulatory oversight, ensure sufficient product distribution and supply at an equitable and fair price.
According to him, almost all businesses and households in Nigeria depend on diesel-powered generators as an alternative source of electricity.
He said: “The outrageous rise in the price of Automotive Gas Oil (Diesel) as the product which was sold between N280 to N350 per liter three (3) weeks ago is currently being sold above N780 per liter and still rising on a daily basis accounting for over 115.4 percent increase within three weeks.
“Diesel was deregulated in 2009 with an initial price of 100 Naira per liter, and between 2009 till date, Nigerians have witnessed a rising percentage increase in the price of the product.
“The hike in the cost of diesel is alleged to be the handiwork of unscrupulous stakeholders in the industry, and is tantamount to economic sabotage, causing untold hardships for Nigerians as it will result in an increase in prices of food as well as other goods and services.
“The possible inflationary pressure envisaged from the rise in the cost of diesel could reduce consumers’ disposable income, thus making it impossible for average Nigerians to meet their basic needs.”
The lawmaker submitted that if the ugly trend of the increasing price of diesel was not checked, the multiplier effect will spell doom for Nigeria’s economy.
The motion was supported by the majority when put to voice vote and eventually adopted.
The Committee was given 6 weeks within which to conclude the assignment and report back for further legislative action.