Energy

House committee targets N5 increase in fuel price for road maintenance

Nigerians may have to pay N5 extra for petroleum products, if the House of Representatives signs the current National Roads Fund (NRF) Bill into law.

This is part of the recommendation of the technical committee set up by the House Committee on Works, headed by Hon. Toby Okechukwu.

Premium Motor Spirit (PMS), popularly called petrol, currently sells at N145 per litre, despite recent efforts by oil marketers to increase the price.

Last week, the Federal government and major oil marketers in the nation’s downstream sector reached an agreement to retain the cost of Premium Motor Sprit, otherwise known as petrol, at the current price of N145 per litre.

There had been apprehension that the federal government was planning to increase the pump price of petrol after marketers complained that the landing cost of the refined products could no longer be sustained the price of N145 per litre.

However, according to a statement from the presidency after the meeting, the stakeholders have resolved to work together towards fixing the challenges confronting the nation’s petroleum industry.

The marketers, under the umbrella of Major Oil Marketers Association of Nigeria (MOMAN), were said to have agreed with the federal government on the need to address issues that may impede the uninterrupted supply of petroleum product and lead to price distortions.

The objective of the National Roads Fund, according to the committee’s report, is to generate revenue for routine and periodic maintenance works on Nigerian roads.

The committee recommended “fuel levy of N5 chargeable per litre on any volume of petrol and diesel products imported into Nigeria and on locally refined petroleum products.”

10% of any revenue paid as user charge per vehicle on any federal road designated as a toll, was also recommended as toll fees; inter-state mass transit user charge of 0.5% deductible from the fare paid by passengers, as well as surcharge of 0.5% chargeable on the assessed value of any imported vehicle into the country.

The fund will be managed by a governing board, with a managing director as the head of the fund.

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