The Federal Government has suspended the planned implementation of a 15 per cent ad-valorem import duty on imported Premium Motor Spirit (PMS) and diesel. This was disclosed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in a statement released on Thursday.
According to the NMDPRA’s Director of Public Affairs, George Ene-Ita, the proposed import duty is “no longer in view.” The agency also assured Nigerians that there is an adequate supply of petroleum products across the country within the acceptable national sufficiency threshold, especially during this period of peak demand.
President Bola Tinubu had earlier approved the introduction of the 15 per cent import duty as part of fiscal reforms aimed at supporting local refining capacity and increasing non-oil revenue. However, the decision drew criticism from key industry stakeholders who warned that such a policy could raise fuel import costs, push up pump prices, and worsen inflation.
The NMDPRA emphasized that there is currently a robust domestic supply of petroleum products, including diesel (AGO), petrol (PMS), and liquefied petroleum gas (LPG), sourced from both local refineries and imports. It also cautioned marketers and consumers against hoarding, panic buying, or arbitrarily inflating prices, warning that such actions could disrupt the supply chain.
The Authority stated that it would continue to monitor the supply situation closely and take necessary regulatory measures to ensure the uninterrupted distribution of petroleum products across the country. It also appreciated the efforts of stakeholders in the midstream and downstream sectors for maintaining a stable supply chain and reiterated its commitment to guaranteeing national energy security.
Industry observers note that with the Dangote Petroleum Refinery and other local refineries ramping up production, the suspension of the import duty may reflect the government’s intent to strike a balance between encouraging local refining and preventing fuel price shocks for consumers.
