Nigeria’s Federal Government has withdrawn the recently introduced 15% import duty on Premium Motor Spirit (PMS) and Automotive Gas Oil (Diesel) following widespread agitation from players in the downstream petroleum sector.
The tax was intended to safeguard local refineries, including Africa’s largest refinery Dangote Refinery, from fuel dumping from the Middle East and Russia.
Some stakeholders in the industry, including banks that finance oil and gas operations, initially welcomed the move as a stopgap measure to protect local refineries, guarantee job security, and strengthen the local currency, the naira.
However, concerns raised by other industry players prompted the Bola Ahmed Tinubu administration to reverse its decision.
A statement issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) confirmed the government’s reversal, noting that the proposed import duty was “no longer in view.” The statement also assured Nigerians of adequate product availability nationwide.
“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 in view.”
The NMDPRA added that it will continue to monitor the supply and distribution of petroleum products across the country and take all necessary regulatory measures to prevent any disruption, particularly during the current peak demand period.
Discover more from Energy News Africa
Subscribe to get the latest posts sent to your email.