The Federal Government has said it will not go ahead with a planned 15% import duty on petrol and diesel after worries that the levy would push up pump prices and spark hoarding.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) issued a statement on Thursday, saying the country has enough fuel supplies and asking the public to remain calm.
“The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) wishes to assure the general public that there is an adequate supply of petroleum products in the country, within the acceptable national sufficiency threshold during this peak demand period.”
The agency added: “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.”
It warned against “hoarding, panic buying or non-market reflective escalation of prices of petroleum products.”
Importantly, the NMDPRA said: “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 regulator promised it would “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.”
The tax had been announced earlier after a letter from the President’s office and provoked rapid reactions from industry groups, business bodies and civil-society voices who warned it could raise costs for consumers and affect inflation. Supporters of the duty had said it would protect local refining and reduce foreign-exchange pressure.
