Fuel, diesel prices may rise as FG pushes for 5% road user charge enforcement

The cost of Premium Motor Spirit (PMS) and Automotive Gas Oil (diesel) may soon increase following renewed efforts by the Federal Ministry of Works and the House of Representatives to enforce the collection and remittance of a 5 per cent road user charge on fuel products.

IDOMA VOICE reports that this push was revealed during an investigative hearing held on Monday by the House of Representatives Ad-Hoc Committee in Abuja.

The Minister of State for Works, Mohammed Goroyo, stressed the urgent need for the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to begin implementing the charge. According to him, the funds are crucial for addressing the significant shortfall in road maintenance financing across the country.

“FERMA requires about ₦880 billion annually to maintain roads in good condition, yet allocations have consistently fallen short—₦76.3 billion in 2023, ₦103.3 billion in 2024, and ₦168.9 billion proposed for 2025,” Goroyo said.

He warned that the shortfall has led to worsening road conditions, increased maintenance costs, and persistent disruptions for commuters and businesses. He stressed that strict implementation and prompt remittance of the five per cent user charge are critical to reversing the trend.

Also speaking, Chukwuemeka Abbasi, Managing Director of NMDPRA, disclosed that although the FERMA Act provides for the deduction of the road user charge from petrol and diesel sales, the directive was never executed.

“The five per cent user charge was intended as a sustainable source of funding for road maintenance, but persistent funding gaps have hindered FERMA’s ability to carry out its mandate effectively,” he said.

Earlier, the Speaker of the House of Representatives, Tajudeen Abbas, recalled that the House had, on March 19, debated a motion drawing attention to the non-implementation of the provision within the FERMA Amendment Act of 2007.

Francis Waive, chairman of both the Ad-Hoc Committee and the House Committee on Rules and Business, clarified that the road user charge is not a new policy nor an attempt to raise fuel prices arbitrarily, as it has been enshrined in law since 2007.

He said the committee’s goal is to ensure compliance with existing laws and uphold legislative authority.

This push for implementation comes at a time when Nigerians have begun to see a slight drop in fuel prices. Recently, outlets operated by the Nigerian National Petroleum Company Limited (NNPCL), Dangote Refinery, and its partners adjusted PMS prices to between ₦875 and ₦895 per litre in Lagos and Abuja.