JUST IN: FG suspends implementation of 15% import duty on petrol, diesel

By Ayorinde Oluokun, Abuja

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has revealed that the the implementation of the 15% ad-valorem import duty on petrol and diesel imported into Nigeria is no longer in view.

NMDPRA said this in a statement published on its website on Thursday while advising Nigerians against panic buying of petroleum products.

The statement was signed by George Ene-Ita, Director, Public Affairs Department, NMDPRA.

Recall that the Federal Inland Revenue Service had recommended imposition of 15 per cent duty on diesel and petrol imported into the country as a way of encouraging local refining of petroleum products.

However, some stakeholders had opposed the initiative as they argued that it will lead to increase in the cost of petrol and diesel and thereby further worsening the hardship in the country.

But supporters of the import duty said it will encourage investment in local production of petroleum products.

They also argued that it will discourage importation of petroleum products into the country as the Dangote Refinery has indicated that it can meet Nigeria’s need for petroleum products.

However, NMDPRA did not state the reason for the suspension of the implementation of the import duty in the statement it published on its social media platform on Thursday morning.

Rather, the agency implored Nigerians not to embark on panic buying in anticipation of rose on prices of petroleum products as a result of the implementation of the import duty.

The statement reads: “NMDPRA wishes to assure the general public that there is adequate supply of petroleum products in the country, within the acceptable national sufficiency threshold during this peak demand period.

“There is robust domestic supply of petroleum products (AGO, PMS, LPG etc) sourced from both local refineries and importation to ensure timely replenishment of stocks at storage depots and retail stations during this period.

“The Authority wishes to use this opportunity to advise against any hoarding, panic buying or non-market reflective escalation of prices of petroleum products.

“It should also 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 will continue to closely monitor the supply situation and take appropriate regulatory measures to prevent disruption of supply and distribution of petroleum products across the country, especially during this peak demand period.

“While appreciating the continued efforts of all stakeholders in the midstream and downstream value chain in ensuring a smooth and uninterrupted supply and distribution, the public is hereby assured of NMDPRA’s commitment to guarantee energy security.”