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NigeriaFuelTaxSuspension as the Federal Government suspends the proposed 15% import duty on petrol and diesel, assuring citizens of stable fuel supply and warning against panic buying ahead of the festive season.
Abuja, Nigeria – The Federal Government of Nigeria has suspended the implementation of the proposed 15% import tax on petrol and diesel, a move that had sparked concerns about potential fuel price increases.
The announcement was made in a statement released on Thursday by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
NMDPRA Confirms Suspension
The statement, signed by George Ene-Ita, Director of the Public Affairs Department at NMDPRA, assured Nigerians that there is adequate supply of petroleum products across the country, especially during the peak demand period of the upcoming festive season.
The authority also advised the public against hoarding, panic buying, or any non-market-driven escalation of petroleum prices, emphasizing that the government remains committed to ensuring smooth and uninterrupted fuel supply nationwide.
Background to the Proposed Import Duty
Earlier, President Bola Tinubu had approved a 15% import duty on diesel and premium motor spirit (PMS), commonly known as petrol.
The approval was conveyed in a letter dated October 21, 2025, by Damilotun Aderemi, Private Secretary to the President, to both the Federal Inland Revenue Service (FIRS) and the NMDPRA.
According to reports, the FIRS had requested the duty to be applied to the cost, insurance, and freight (CIF) value of imported fuel to align import costs with domestic realities.
The letter also indicated that implementing the duty could have increased the pump price of petrol by approximately ₦99.72 per litre.
Government’s Position
With the latest suspension, the Federal Government appears to have reconsidered the timing of the policy amid concerns about inflation, fuel affordability, and economic stability.
The NMDPRA reaffirmed its commitment to maintaining market stability and consumer protection, ensuring that fuel remains available and accessible throughout the country.
Implications for Consumers and the Market
The suspension is expected to ease public anxiety over potential fuel price hikes and stabilize market sentiment ahead of the yuletide season.
Analysts suggest that the decision reflects the government’s effort to balance revenue generation with economic realities, particularly as Nigerians continue to grapple with rising living costs and currency fluctuations.