Brace Up! Diesel, Fuel Prices May Skyrocket As Govt Plans New 5% Levy

The prices of Premium Motor Spirit (PMS) and Automotive Gas Oil (diesel) may increase soon as the Federal Ministry of Works and the House of Representatives push for the enforcement of a 5% road user charge on fuel and diesel sales.....KINDLY READ THE FULL STORY HERE▶

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

Minister of State for Works, Mohammed Goroyo, stressed the urgent need for the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to begin collecting the road user levy to bridge the significant funding gap in maintaining federal roads.

According to him, Nigeria needs about ₦800 billion annually for effective road maintenance, yet allocations have been inadequate — with FERMA receiving ₦76.3bn in 2023, ₦103.3bn in 2024, and ₦168.9bn budgeted for 2025.

He warned that the consequences of underfunding include worsening road conditions, rising maintenance costs, and longer travel disruptions for citizens and businesses.

On his part, NMDPRA Managing Director Chukwuemeka Abbasi admitted that the agency had yet to implement the five per cent deduction, despite its inclusion in the FERMA Act as a sustainable funding mechanism for road infrastructure.

He said, “FERMA has struggled for years due to underfunding, which has hampered its ability to maintain Nigeria’s vast road network.”

Speaker of the House, Tajudeen Abbas, noted that the House had earlier deliberated on the issue during plenary on March 19, citing failure to enforce the provision under the amended FERMA Act of 2007.

Committee Chairman Francis Waive clarified that the charge is not a new policy nor a price hike initiative. It is an existing law meant to fund road maintenance, and the committee’s goal is to ensure full compliance with established legislation.

This move comes at a time when Nigerians have seen slight reductions in petrol prices. The Nigerian National Petroleum Company Limited and Dangote Refinery recently dropped pump prices to ₦875 and ₦895 per litre in Lagos and Abuja, respectively.