The Federal Government has suspended the proposed 15 percent ad-valorem import duty on Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO), commonly known as petrol and diesel. The announcement was made by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which assured Nigerians that fuel supplies remain stable despite rising demand during the current peak season.
“It should 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 Authority said in a statement released on Thursday.
Last month, President Tinubu had approved the duty through a directive conveyed to the Federal Inland Revenue Service (FIRS) and NMDPRA, a move that immediately sparked concerns among oil marketers. They warned that the levy would push up prices of petrol and diesel, worsen operational costs, and make it harder for importers to bridge supply gaps caused by limited output from local refineries.
The suspension of the duty is now being seen as a relief to importers and small energy distributors, particularly those struggling with rising costs and limited margins. Many stakeholders in the downstream sector say the decision will help maintain price stability, prevent supply disruptions, and safeguard small and medium enterprises that depend on steady fuel availability for daily operations.
In its statement, NMDPRA reaffirmed that both domestic refining and importation channels are providing a “robust and steady inflow” of petroleum products, including PMS, AGO, and Liquefied Petroleum Gas (LPG). The Authority added that it is closely monitoring supply and distribution networks nationwide to prevent artificial scarcity or price manipulation.
“There is a robust domestic supply of petroleum products sourced from both local refineries and importation to ensure timely replenishment of stocks and storage deposits at retail stations during this period,” the statement said.
The regulator also cautioned marketers and depot operators against hoarding, panic buying, or arbitrary price hikes, warning that such actions could undermine stability in the downstream market.
Meanwhile, the Dangote Petroleum Refinery had earlier supported the now-suspended import duty, describing it as a necessary measure to protect local refiners and prevent the dumping of imported fuel products. The refinery claimed it has enough capacity to meet national demand, stating that it is currently loading about 45 million litres of petrol and 25 million litres of diesel daily while collaborating with regulatory agencies to ensure smooth nationwide distribution.
Analysts say the government’s decision to suspend the tax reflects an effort to balance protection for local refiners with the urgent need to keep fuel affordable and accessible. For small businesses and transport operators that depend on fuel for production and logistics, the move is expected to ease cost pressures and support economic stability in the short term.
