Our Reporter | Abuja, Nigeria
The Federal Government has suspended its earlier plan to introduce a 15 per cent ad valorem import duty on Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO), otherwise known as petrol and diesel, following concerns about its potential effect on pump prices and product availability.
In a statement issued on Thursday through its verified X handle, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said the proposed implementation of the tariff was “no longer in view.”
According to the Director of Public Affairs at the NMDPRA, George Ene-Ita, the authority reaffirmed that the domestic supply of petroleum products remains strong and within the national sufficiency threshold despite heightened demand.
“It should also be noted that the implementation of the 15 per cent ad valorem import duty on imported Premium Motor Spirit and Diesel is no longer in view,” Ene-Ita said.
“There is a robust domestic supply of petroleum products (AGO, PMS, LPG, etc.) sourced from both local refineries and importation to ensure timely replenishment of stocks at storage depots and retail stations during this period.”
The clarification follows reports that President Bola Tinubu had earlier approved the introduction of the import duty as part of broader fiscal reforms aimed at boosting government revenue. However, the policy triggered pushback from downstream stakeholders, who warned it could exacerbate inflation and fuel supply challenges.
The NMDPRA cautioned marketers against hoarding, panic buying, or unjustifiable price hikes, assuring Nigerians that there is no cause for alarm.
“The Authority will continue to closely monitor the supply situation and take appropriate regulatory measures to prevent disruption of supply and distribution of petroleum products across the country, especially during this peak demand period,” the statement added.
The regulatory agency also commended industry stakeholders for their continued collaboration in maintaining stable product supply and distribution across the country.
With the suspension of the proposed duty, market analysts believe the move will help sustain current pricing levels and ease pressure on importers as the festive season approaches.
The 15 per cent ad valorem import duty—calculated based on the value of imported goods—was part of a new fiscal measure meant to enhance government revenue. Energy economists, however, cautioned that applying such a tariff on refined petroleum products could worsen Nigeria’s already fragile inflationary environment and trigger fuel scarcity fears.