FG Suspends 15% Import Tax on Imported Petrol

The Nigerian government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has suspended the implementation of the 15% ad-valorem import duty on Premium Motor Spirit (PMS) and diesel.

This announcement was made in a statement signed by George Ene-Ita, the Director of the Public Affairs Department.

In October 2025, President Bola Ahmed Tinubu approved a 15% import duty on PMS and diesel, which caused concern within the oil and gas sector. Operators warned that the new tax could lead to higher petrol prices, worsened inflation, and increased import costs, while the government insisted that the policy aimed to boost local refining and generate revenue.

The approval letter from the President, signed by his Private Secretary Damilotun Aderemi, followed a proposal by the Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji. The proposal recommended the imposition of a 15% duty on the cost, insurance, and freight value of imported petrol and diesel to better align import costs with the domestic market realities.

Adedeji explained in his memo that the measure was part of ongoing fiscal and energy reforms designed to strengthen the naira-based oil economy, ensure price stability, and help transition the nation toward local refining capacity in line with the administration’s Renewed Hope Agenda.

The proposed tax was meant to support local refineries, including the Dangote Petroleum Refinery and modular plants. However, this decision faced mixed reactions, with many stakeholders expressing concerns that it could lead to inflationary pressures and higher fuel prices, especially with Nigeria’s domestic refineries yet to reach full operational capacity.

In his latest statement, George Ene-Ita confirmed that the implementation of the 15% ad-valorem import duty on PMS and diesel will no longer proceed. He reassured the public that there is sufficient supply of petroleum products within the national sufficiency threshold, especially during the peak demand period.

Ene-Ita also emphasized that petroleum products, including AGO, PMS, and LPG, are being sourced from both local refineries and imports to ensure timely replenishment at storage depots and retail stations.

He urged against hoarding, panic buying, or non-market-reflective price increases, and reassured the public that NMDPRA will continue monitoring the supply situation and take appropriate regulatory actions to ensure smooth distribution of petroleum products.