JUST IN: Senate bows to pressure, steps down bill proposing N5 fuel levy
- The Senate has stepped down consideration of a bill that would have led to an increase in price of petrol
- Several lawmakers spoke particularly on the N5 levy on petroleum products
- There were speculations making the rounds are that there are plans to raise the pump price of petrol by N5
The Nigerian Senate on Thursday, June 8, dropped a bill that would have led to an increase in price of petrol.
The upper chamber stepped down the bill "National Roads Funds bill 2017", asking the Committee on Works to make “further consultations” on it.
On Tuesday, June 6, the federal government reassured Nigerians and told them to ignore speculations that it was planning to raise the pump price of petrol by N5.
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NAIJ.com gathered that the bill recommends that importers should pay N5 levy on every litre of imported petroleum products and that the levy will form part of the proposed national roads fund.
The bill also recommends the deduction of 0.5% on fares, paid by passengers travelling on interstate roads to commercial mass transit operators, as well as the return of toll gates on federal roads, among others.
The bill was condemned by Nigerians and labour unions who argued that such levy would be transferred to consumers through price increase.
In a previous report by NAIJ.com, Nigeria’s minister of state for Petroleum Resources, Dr Ibe Kachikwu, declared that it is shameful for the country to still be importing finished petroleum products.
Kachikwu was reacting to the speculations of the N5 increase in the price of the premium motor spirit (PMS) following a recent move by the country’s Senate.
In a series of tweets, the minister, who had recently promised that Nigeria would stop importation of oil by 2019, added that the federal ministry of Petroleum Resources was serious with ending this challenge.
Watch this NAIJ.com video on market prices of various commodities and what Nigerian think below: