The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced the suspension of the 15 per cent ad-valorem import duty on imported Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO), also 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 introduction of the 15% import duty had generated mixed reactions in the downstream industry.
It was seen in one breadth as a measure to protect local refineries while those opposing it said it could trigger fuel price increase as Nigerians would bear the burden of the burden of the expected increase.
The president’s approval of the duty was contained in a letter with reference no: PRES8197/HAGF/100/71/FIRS/40/88-2/NMDPRA/2, dated 21 October.
The letter was addressed to the Attorney General of the Federation and Minister of Justice, Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The letter, titled ‘Re: introduction of a market-responsive import tariff framework on Premium Motor Spirit (PMS) & Diesel,’ was signed by Damilotun Aderemi, the Private Secretary to the President.
The president’s approval followed a request by FIRS Chairman, Zacch Adedeji for the government to apply the tariff to align import costs with domestic realities.
Adedeji said the duty, applied to the Cost, Insurance, and Freight (CIF) value, is expected to increase petrol prices by approximately N99.72 per litre.
However the Authority assured the public that there is adequate supply of petroleum products across the country, maintaining volumes within the acceptable national sufficiency threshold during this peak demand 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 statement said.
According to NMDPRA, there is robust domestic availability of petroleum products—including PMS, AGO, and Liquefied Petroleum Gas (LPG)—sourced from both local refineries and importation, ensuring timely replenishment of stocks at depots and retail outlets nationwide.
