The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced that the previously proposed implementation of a 15% ad-valorem import duty on Premium Motor Spirit (PMS) and Diesel imports has been shelved. The announcement came in a statement posted on the authority’s official X (formerly Twitter) handle on Thursday, reassuring the public that the plan is no longer under consideration.
NMDPRA Clears the Air on Duty Implementation
The statement, issued by George Ene-Ita, the Director of the Public Affairs Department at NMDPRA, clarified the government's position on the proposed duty. "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 statement said.
This move comes as a relief to many Nigerians and industry stakeholders, who had been concerned about the potential impact such a duty would have on fuel prices, especially in light of the already challenging economic environment.
The Proposed Duty and Its Implications
Earlier reports had indicated that President Bola Tinubu had approved the introduction of the 15% import duty on petrol and diesel imports into Nigeria. The idea behind the duty was likely to raise revenue for the government, but it faced backlash from various sectors, especially those in the transportation and energy industries, who feared that it would lead to increased fuel costs and exacerbate inflation.
The duty could have added significant pressure on the prices of fuel, making it more expensive for consumers, particularly during periods of high demand. However, with the NMDPRA’s confirmation that the duty is no longer being pursued, the immediate threat of price hikes due to this tax has been alleviated.
Reassurance of Adequate Fuel Supply
In addition to addressing the duty issue, NMDPRA also assured the public that there is currently an adequate supply of petroleum products across the country, meeting the acceptable national sufficiency threshold. The statement emphasized that this supply is sustained through both local refining efforts and imports, ensuring that stocks at storage depots and retail stations are replenished in a timely manner, particularly during this peak demand period.
With the country entering its high-demand period, often associated with increased consumption of fuel due to various seasonal factors, the NMDPRA is closely monitoring the supply situation to prevent any disruptions.
Call for Disciplined Consumer Behavior
The NMDPRA also issued a strong advisory against hoarding, panic buying, and any non-market reflective price escalations that could destabilize the fuel supply chain. The authority encouraged consumers and stakeholders to act responsibly and avoid creating artificial shortages or inflating prices, which could harm the economy and the public.
Ongoing Commitment to Energy Security
The statement concluded by reaffirming the NMDPRA’s commitment to ensuring the continued availability of petroleum products, thereby contributing to the overall energy security of the country. The authority also acknowledged the efforts of all stakeholders within the midstream and downstream value chain for their role in maintaining a smooth and uninterrupted supply of fuel across Nigeria.
By assuring the public that necessary regulatory measures would be taken to prevent any disruption in the supply and distribution of petroleum products, NMDPRA aims to maintain stability in the country’s fuel market during this critical period.
Conclusion
While the suspension of the proposed 15% import duty on petrol and diesel provides some relief, the NMDPRA’s focus remains on ensuring energy security and maintaining a steady supply of fuel during periods of high demand. The authority’s proactive stance on preventing disruptions and stabilizing the market demonstrates a commitment to safeguarding both public interests and the country’s economic stability during these challenging times.