Nigerian govt suspends implementation of 15% petrol import duty

The Nigerian Government has suspended the implementation ofa 15 per cent import duty on premium motor spirit and automotive gas oil. The spokesperson of the Nigerian Midstream and DownstreamPetroleum Regulatory Authority, NMDPRA, George Ene-Ita, disclosed this in astatement on Thursday. The country’s downstream oil sector regulator urgedNigerians to avoid panic buying of petrol and diesel, assuring the public ofadequate supply nationwide. “It should also be noted that the implementation of the 15percent ad valorem import duty on imported premium motor spirit and diesel isno longer in view,” NMDPRA stated. The statement added, “The Nigerian Midstream and DownstreamPetroleum Regulatory Authority assures the general public that there is anadequate supply of petroleum products in the country, within the acceptablenational sufficiency threshold during this peak demand period. “There is a robust domestic supply of petroleum products(AGO, PMS, LPG, etc.) sourced from both local refineries and importation toensure timely replenishment of stocks at storage depots and retail stationsduring this period. “The Authority wishes to use this opportunity to adviseagainst any hoarding, panic buying or non-market reflective escalation ofprices of petroleum products. “The Authority will continue to closely monitor the supplysituation and take appropriate regulatory measures to prevent disruption ofsupply and distribution of petroleum products across the country, especiallyduring this peak demand period. “While appreciating the continued efforts of allstakeholders in the midstream and downstream value chain in ensuring a smoothand uninterrupted supply and distribution, the public is hereby assured ofNMDPRA’s commitment to guarantee energy security.” Recall that President Bola Ahmed Tinubu, late last month,approved the implementation of a 15 per cent import duty on petrol and dieselto encourage Dangote Refinery. However, the decision has drawn mixed reactions fromeconomists, stakeholders, and Nigerians. While some believe it is a good move to encourage DangoteRefinery, others argue that it would further worsen hardship for Nigerians aspetrol and diesel prices would rise.

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