The Federal Government has suspended its plan to impose a 15% import duty on petrol and diesel, aiming to stabilize fuel prices and avoid inflationary pressure.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced the suspension of the proposed 15% ad-valorem import duty on Premium Motor Spirit (PMS) and Automotive Gas Oil (diesel). This decision comes amid concerns that the policy could trigger a spike in fuel prices and worsen inflation across the country. Newsverge BizWatchNigeria.Ng The Guardian Nigeria.
Federal Government Suspends Fuel Import Duty to Protect Consumers
In a strategic reversal, the Federal Government of Nigeria has suspended the planned implementation of a 15% ad-valorem import duty on petrol and diesel. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) disclosed the decision in a statement signed by its Director of Public Affairs, George Ene-Ita.
The import duty, approved by President Bola Tinubu in October 2025, was part of a broader fiscal reform aimed at aligning import costs with domestic production and encouraging investment in local refineries. The proposal originated from the Federal Inland Revenue Service (FIRS), whose chairman, Zacch Adedeji, argued that the tariff would promote fairness and stimulate growth in the downstream sector The Guardian Nigeria.
However, widespread concern over the potential impact on fuel prices and inflation led to a reevaluation. The NMDPRA assured Nigerians that there is currently a robust supply of petroleum products, sourced from both local refineries and imports, and that the suspension will help maintain price stability during peak demand periods Newsverge BizWatchNigeria.Ng.
This move reflects the government’s responsiveness to economic realities and public sentiment, especially as Nigerians continue to grapple with high living costs. It also underscores the delicate balance between fiscal policy and consumer protection in the energy sector.
