FG Halts 15% Import Levy on Fuel, Guarantees Sufficient Nationwide Supply

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced the suspension of the planned 15 per cent advalorem import duty on imported petrol (Premium Motor Spirit, PMS) and diesel (Automotive Gas Oil, AGO).
According to a statement signed by the Director of Public Affairs, the duty initially approved by Bola Ahmed Tinubu in October 2025 will not be implemented at this time.
The government’s decision comes amid concerns from industry stakeholders that the duty could increase pump prices and worsen inflation, especially while domestic refining capacity continues to ramp up.
In its release, the NMDPRA assured Nigerians of adequate supply of petroleum products nationwide emphasising that storage depots and retail stations are being replenished through both local refining and importation channels.
                    “It should be noted that the implementation of the 15 per cent ad-valorem import duty on imported PMS         and Diesel is no longer in view,” the regulator stressed.
The statement referenced a “robust domestic supply of petroleum products (AGO, PMS, LPG etc.) sourced from both local refineries and importation” to ensure timely replenishment of stocks during the current peak demand period.
Further, the NMDPRA warned against hoarding, panic buying or unjustified price hikes not reflective of market conditions, and pledged close monitoring of the supply and distribution chain to avoid disruptions.
The suspended duty had formed part of the federal government’s tariff framework directed at boosting local refining  including the operations of the Dangote Petroleum Refinery  and reducing reliance on fuel imports.
Industry actors had warned that although the goal of protecting local refining was valid, the currencycost pressures and import dependencies meant the duty could trigger higher pump prices and supply squeeze if local output didn’t fill the gap.
By suspending the duty and committing to steady supply, the government aims to stabilize downstream operations and reassure consumers during what is seen as a sensitive period for energy supply. Observers will be watching closely to ensure that retail availability remains unaffected in both urban and remote areas, and that price adjustments do not erode the relief implied by the decision.
For motorists, transport businesses and households, this move offers short-term reassurance. However, the long-term question remains whether the local refining sector will be able to meet demand consistently and whether future policy will revisit import duties once domestic supply improves.