Tinubu bows to pressure, stops 15% fuel import duty plan

Tinubu bows to pressure, stops 15% fuel import duty plan

 

The Federal Government has shelved its plan to introduce a 15 per cent import duty on petrol and diesel, barely three weeks after President Bola Tinubu approved the tariff proposal.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) confirmed the suspension on Thursday in a statement by its Director of Public Affairs, George Ene-Ita, urging Nigerians to avoid panic buying or hoarding of petroleum products.

“It should be noted that the implementation of the 15% ad-valorem import duty on imported Premium Motor Spirit (PMS) and Automotive Gas Oil (Diesel) is no longer in view,” the statement said.

President Tinubu had on October 29 approved the tariff to raise the landing cost of imported fuel, following a proposal by the Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji.

The duty — calculated on the cost, insurance, and freight (CIF) value of imports — was expected to take effect from November 21, 2025, and was aimed at protecting local refineries such as the Dangote Refinery and modular plants by making imported fuel less competitive.

However, the policy quickly drew public criticism, with energy analysts warning that it could push petrol pump prices up by as much as ₦150 per litre and worsen inflation and transport costs.

NMDPRA said the government decided to suspend implementation after reviewing market realities and the need to stabilise domestic supply and prices.

The Authority also assured that there is no cause for concern over fuel availability, noting that product supply remains “robust and within the acceptable national sufficiency threshold.”

“There is a steady inflow of petroleum products — including PMS, AGO, and LPG — from both local refineries and imports to guarantee adequate stock at depots and retail stations nationwide,” Ene-Ita stated.

He cautioned marketers against hoarding or arbitrary price increases, warning that the regulator would not hesitate to take firm action against any operator involved in anti-market practices.

“The Authority will continue to monitor supply and distribution to prevent disruptions, especially during this peak demand period,” the statement added.

The NMDPRA commended stakeholders in the downstream sector for their cooperation and reaffirmed its commitment to ensuring energy security and stable product supply across the country.