FG suspends 15% import tax on imported petrol and diesel

The federal government through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has suspended the implementation of the 15 percent ad-valorem import duty on imported Premium Motor Spirit (PMS) and diesel.  The Authority disclosed this in a statement signed by George Ene-lta, Director, Public Affairs Department. President Bola Ahmed Tinubu had in October this year approved a 15 percent import policy on PMS and diesel. This development stirred widespread concern across the oil and gas sector, with operators warning it could raise petrol prices, worsen inflation, and increase import costs, even as the government insists the policy aims to boost local refining and generate revenue.   The duty, introduced as part of the Federal Governments new tariff framework for petroleum products, was meant to support emerging local refineries such as the Dangote Petroleum Refinery and modular plants. The directive was met with mixed reactions, as stakeholders expressed concerns that the new tax could worsen inflation and push up pump prices at a time when Nigerias domestic refineries are yet to attain full operational capacity. However, in the statement released today, the NMDPRA said that the implementation of the 15 percent ad-valorem import duty on imported Premium Motor Spirit and Diesel is no longer in view.  He assured 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 percent 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, he said.