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REPS TO INVESTIGATE REMITTANCE OF FIVE PERCENT CHARGE ON PUMP PRICE OF PETROLEUM PRODUCTS

The House of Representatives Ad hoc committee to investigate the implementation and remittance of the five per cent user charge on the pump price of petroleum products for road maintenance, has inaugurated two stakeholders’ Committees to address issues surrounding the collection and disbursement of the charges.

The user charge as contained in the Act establishing the Federal Roads Maintenance Agency (FERMA) stipulates 40 per cent of the proceeds will accrue to FERMA and 60 per cent to be utilised by the established state roads maintenance agencies.

Chairman of the Ad hoc committee, Hon. Francis Waive said the two committees were expected to look into the pre-Tax Act, and the post-Tax Act situations, and address areas of conflicts with the FERMA Act, lamenting the five percent user charge had over the years, “not been operationalised.”

He gave the two committees terms of reference to Include; specifying modalities, procedures and processes for collection and disbursement, recommending specific modalities for personnel, opening of beneficiary bank account for remittance of collections, and identifying gaps and conflicts of policies, and realignment for further legislative actions.

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