Fuel and Diesel Prices May Rise as FG, Reps Push for 5% Road User Charge

The price of Premium Motor Spirit (petrol) and Automotive Gas Oil (diesel) may soon rise, following efforts by the Federal Ministry of Works and the House of Representatives to implement a proposed 5% road user charge.

This development was revealed during an investigative hearing held on Monday in Abuja by the House Ad-Hoc Committee.

Minister of State for Works, Mohammed Goroyo, emphasized the urgent need for the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to begin collecting the levy. He explained that the revenue from the charge would help bridge the significant funding gap in maintaining federal roads.

Goroyo noted that Nigeria requires about ₦800 billion annually for road maintenance, yet current allocations to the Federal Roads Maintenance Agency (FERMA) are inadequate.

“FERMA requires an estimated N880bn annually for optimal road conditions. Budgetary allocations have consistently fallen short—N76.3bn in 2023 and N103.3bn in 2024, while N168.9bn was budgeted for 2025.

“The consequences of this are glaring—deteriorating road conditions, increased repair costs, and prolonged disruptions for commuters and businesses alike.

“Thus, the diligent implementation and timely remittance of the five percent user charge are paramount,” he said.

The Managing Director of the Federal Road Maintenance Agency, Chukwuemeka Abbasi, stated that the Nigeria Midstream and Downstream Petroleum Regulatory Authority has yet to implement the template for deducting the road user charge from petrol and diesel prices.

He explained that “the five percent user charge, as enshrined in the FERMA Act, was designed to serve as a sustainable funding mechanism for road maintenance and rehabilitation. However, for years, FERMA has grappled with severe funding inadequacies, hampering its ability to maintain our vast road network effectively.”

Speaker of the House of Representatives, Tajudeen Abbas, earlier recalled that the House, during a plenary session on March 19, considered a motion highlighting the non-implementation of the remittance of the five percent user charge on petroleum products designated for road maintenance under the FERMA Amendment Act of 2007.

Committee chairman Francis Waive, who also chairs the House Committee on Rules and Business, clarified that the five percent road user charge is neither a new levy nor an effort to increase fuel prices, as it has been part of the law since 2007.

He explained that the investigation aims to correct the ongoing violations of existing legislation, stressing that the House will ensure full compliance with all laws enacted by the National Assembly, whether by individuals or government agencies.

This development comes amid a recent drop in petrol prices, with NNPC retail outlets, Dangote Refinery, and its partners reducing the cost of PMS to N875 and N895 per litre in Lagos and Abuja.