The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced the suspension of the 15% ad-valorem import duty on imported Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO), commonly known as petrol and diesel.
This was contained in a statement signed by George Ene-Ita, Director of the Public Affairs Department, on Thursday.
The decision follows the controversy generated by the duty’s introduction, which some industry players viewed as a protection measure for local refineries, while others warned it could lead to a hike in fuel prices and worsen economic hardship.
According to Daily Trust, the initial approval of the 15% duty was granted by the President in a letter dated October 21, referenced PRES8197/HAGF/100/71/FIRS/40/88-2/NMDPRA/2, and signed by Damilotun Aderemi, Private Secretary to the President. The approval was based on a request by FIRS Chairman, Zacch Adedeji, who argued that the tariff would align import costs with domestic realities.
Adedeji had projected that the duty, applied to the Cost, Insurance, and Freight (CIF) value, could raise petrol prices by about ₦99.72 per litre.
However, NMDPRA assured Nigerians that there is sufficient supply of petroleum products nationwide, maintaining volumes above the national sufficiency threshold despite increased demand.
“The Authority wishes to advise against hoarding, panic buying, or arbitrary price increases. The implementation of the 15% ad-valorem import duty on PMS and diesel is no longer in view,” the statement read.
The Authority added that robust domestic availability of petrol, diesel, and Liquefied Petroleum Gas (LPG) from both local refineries and imports would ensure consistent product supply across depots and retail outlets nationwide.
