FG Suspends 15% Import Duty on Petrol and Diesel
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), commonly known as petrol and diesel.
The announcement was made in a statement signed by George Ene-Ita, Director of the Public Affairs Department, on Thursday.
The 15 per cent import duty, which had previously sparked mixed reactions across the downstream sector, was initially introduced to protect local refineries. While supporters argued it would bolster domestic production, critics warned it could push up fuel prices, placing an additional financial burden on Nigerians.
The duty had received presidential approval through a letter referenced PRES8197/HAGF/100/71/FIRS/40/88-2/NMDPRA/2, dated October 21, addressed to the Attorney General of the Federation and Minister of Justice, the Federal Inland Revenue Service (FIRS), and NMDPRA. The letter, titled “Re: Introduction of a Market-Responsive Import Tariff Framework on Premium Motor Spirit (PMS) & Diesel,” was signed by Damilotun Aderemi, Private Secretary to the President.
The approval followed a request by FIRS Chairman Zacch Adedeji, who proposed the tariff to better align import costs with domestic economic conditions. Adedeji had indicated that applying the duty to the Cost, Insurance, and Freight (CIF) value could increase petrol prices by roughly N99.72 per litre.
In its statement, NMDPRA reassured the public that there is sufficient supply of petroleum products nationwide. The Authority emphasized that volumes are being maintained within acceptable national sufficiency levels, especially during this peak demand period.
“The Authority wishes to advise against hoarding, panic buying, or any unjustified increase in petroleum product prices. It should also be noted that the implementation of the 15 per cent ad-valorem import duty on imported Premium Motor Spirit and Diesel is no longer under consideration,” the statement said.
NMDPRA further confirmed that domestic availability of petroleum products—including PMS, AGO, and Liquefied Petroleum Gas (LPG)—remains robust, sourced both from local refineries and imports, ensuring consistent replenishment of stocks at depots and retail outlets across the country.
