Recently, the cost of living in Nigeria has appeared to be so high that everybody, both the rich and the poor alike is complaining. The most worrisome aspect of the drama is that the locally produced commodities are very expensive too, which brought to the fore and negate the lame excuse of some extant literatures that it was as a result of the exchange rate of US Dollar to Nigerian naira. However, this study interrogated the cost of living in Nigeria vis-à-vis the fuel price hike mantra. For the purpose of unraveling the problematic, the utilized Ex-Post facto research design. The relevant data for the study were generated from secondary source, through Documentary method of data collection, whereas the data so collected were analyzed with Content Analysis. Theoretically, the study adopted Systems theory as a theoretical compass around which it revolved. The theory among others viewed the political society as being interconnected in the manner that what affects a part has ripple effect on the other part of the political society. From the study therefore, we found that the high cost of living in Nigeria is connected to the fuel price hike because fuel as essential commodity and the mainstay of Nigerian economy is central to Nigerian economy to the extent that what affect fuel price affects other aspects of the economy. In order to remedy the ugly situation, the study suggested that Nigerian leaders should adopt any sustainable economic strategy to bring down the price of fuel to reduce the high cost of living in the state. This can perfectly be done by subsidizing the oil price and carefully monitoring the subsidy regime to ensure transparency. Going by the principles of utilitarianism and the social contract theory of the origin of the state, the welfare of the masses should be the driving force of the government.