The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has officially canceled plans for a 15 percent ad-valorem duty on imported Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO), commonly referred to as petrol and diesel.
In an official release issued today, the regulator emphasized that the duty, previously greenlit by President Bola Tinubu, will not proceed. The decision comes amid concerns from fuel importers about potential price spikes and operational hurdles.
The NMDPRA assured citizens of uninterrupted fuel availability, even as demand surges during the high-consumption period. “Supply chains are strong, drawing from both local refineries and imports to keep retail outlets fully stocked,” the statement read.
It highlighted ongoing monitoring of distribution networks to avert shortages or artificial scarcity. Marketers and depot owners were warned against product hoarding, panic-induced purchases, or unjustified price hikes that could destabilize the market.
Background on the Reversed Policy
The duty was authorized in a presidential directive dated October 21, 2025, communicated through the President’s Private Secretary to the Federal Inland Revenue Service (FIRS) and NMDPRA. Industry stakeholders had criticized the measure, arguing it would burden importers compensating for insufficient output from domestic refineries.
Supply Assurance Measures
The authority reported reliable inflows of PMS, AGO, and Liquefied Petroleum Gas (LPG) from local production and overseas sources. “We are vigilantly overseeing nationwide supply and distribution to maintain market equilibrium,” the NMDPRA added.
Context from Key Players
Dangote Petroleum Refinery had earlier supported the duty, viewing it as a safeguard for domestic producers against low-quality imports. The facility claims it can satisfy national needs, currently dispatching around 45 million liters of petrol and 25 million liters of diesel daily, in collaboration with regulators for broad distribution.
