The senate says there are no plans to “add one naira”
to the price of fuel.

The upper legislative chamber made the clarifications
following reports that a N5 levy would be imposed on
every litre of diesel and petrol imported into the
country.

On Thursday, the senate committee on works made
available the report of a proposed bill for the rescue of
Nigerian roads, of which 77 per cent is classified as
dilapidated and dangerous.

The bill had listed the levy as part of the measures to
raise funds for the maintenance of roads.

But in a statement on Saturday, the senate said there
were different opinions on the issue.

“At the public hearing on the national roads fund bill
the stakeholders were unanimous on the need to
access a percentage of the funds for the sustainable
maintenance of roads from the pricing template of
petroleum products,” the statement read.

“While the unanimity was on a percentage, opinion
varied as to what percentage. Some argued for 25%,
11%, 7% and 5% of the value of the price of the
product.

“This position was held strongly since most other
African countries have actually implemented an
average of N25 surcharge on petroleum products for
the maintenance of their roads. It was the widely-held
view that we may not be able to go that far in view of
the economic challenges the country was going
through and the need to ameliorate the suffering of the
ordinary Nigerian.

“The technical committee in review this submission
determined that even at a surcharge of 5% which
leaves the value at about N11 (at the current price of
PMS) will be untenable not only due to implementation
challenge that would have require that at all times, the
surcharge will mean an addition burden is placed on
Nigerians beyond the cost of the petroleum product.

“Rather it was agreed that the charge be pegged at N5
(five naira) and implemented within the existing
charges template rather than a calculation arrived at in
addition to the price of the product.

“Therefore, what the senate has adopted is an
innovative and most sensitive approach to eliminate
the possibility of increasing the price of fuel in order to
fund the roads fund. Now with what we have the
charge on petroleum products for the purpose of
funding road maintenance will have to be determined
within the charges template as they already existing
within the PPPRA template.

“Finally, it’s important therefore to make it clear that
there is no ambiguity in what the senate has done as
there will be no one naira added to the current price of
fuel as a result of this bill. The charge is to be
accommodated within the pricing charge template in
effect within the PPPRA.

“What the senate has adopted is the minimalist
approach to ensure that our roads can come back to
life.”