FG Stops 15% Import Tax On Petroleum Products

FG Stops 15% Import Tax on Petroleum Products

The Federal Government of Nigeria has officially announced the suspension of the recently introduced 15% import tax on petroleum products.

This decision was communicated through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which clarified that the implementation of the levy is “no longer in view.”

The announcement followed concerns raised after President Bola Tinubu had earlier signed the import duty into law, sparking fears of potential fuel price hikes and supply disruptions.

According to the NMDPRA, the suspension is aimed at stabilizing the petroleum market and ensuring that consumers are not subjected to unnecessary panic buying, hoarding, or speculative price increases.

The agency emphasized that Nigeria currently has adequate supplies of petroleum products, including Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), and Liquefied Petroleum Gas (LPG), sourced from both local refineries and imports. This assurance was intended to calm public anxiety during a period of peak demand.

The regulatory authority further stressed that the government remains committed to maintaining energy security and preventing any disruption in the supply chain. It highlighted the robust domestic supply system, which ensures timely replenishment of stocks at depots and retail stations nationwide. Stakeholders in the midstream and downstream sectors were commended for their continued efforts in sustaining smooth distribution across the country.

The suspension of the 15% import tax carries significant economic implications. On one hand, it relieves consumers from the immediate burden of higher fuel costs, which could have triggered inflationary pressures across various sectors. On the other hand, it reflects the government’s balancing act between revenue generation and protecting citizens from economic hardship.

The NMDPRA’s intervention also signals a proactive regulatory stance, aiming to prevent market distortions and maintain public confidence in the petroleum supply chain.

In conclusion, the Federal Government’s decision to halt the 15% import tax on petroleum products underscores its priority of safeguarding energy stability and consumer welfare.

By assuring adequate supply and discouraging panic-driven behaviors, the government seeks to maintain equilibrium in Nigeria’s petroleum market while reinforcing its commitment to transparency and effective regulation.