The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced that the implementation of the 15% ad-valorem import duty on petrol and diesel imported into Nigeria is no longer being pursued.
The plan was shelved two weeks after President Tinubu approved its implementation as part of a broader strategy to strengthen Nigeria’s domestic refining sector and ensure fair competition between imported and locally refined fuels.
The NMDPRA, through its Director of Public Affairs, George Ene-Ita, confirmed the suspension in a statement issued on Wednesday, following weeks of debate among stakeholders who argued that the policy could trigger fuel price increases, particularly during peak demand periods.
Although the agency did not provide specific reasons for the suspension, it urged Nigerians not to engage in panic buying over fears of a possible rise in petroleum product prices as a result of the proposed import duty.
According to the agency, “NMDPRA wishes to assure the general public that there is adequate supply of petroleum products in the country, within the acceptable national sufficiency threshold during this peak demand period.
“There is 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 Authority wishes to use this opportunity to advise against any hoarding, panic buying or non-market reflective escalation of prices of petroleum products.
“It should also be noted that the implementation of the 15% ad-valorem import duty on imported Premium Motor Spirit and Diesel is no longer in view.
“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.
“While appreciating the continued efforts of all stakeholders in the midstream and downstream value chain in ensuring a smooth and uninterrupted supply and distribution, the public is hereby assured of NMDPRA’s commitment to guarantee energy security.”
The Guild reports that with this suspension, consumers can expect relief from potential fuel cost spikes, while confidence in the government’s efforts to manage the downstream petroleum sector is likely to be reinforced.
