The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced the suspension of the planned 15 per cent ad-valorem import duty on Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO), commonly known as petrol and diesel.
The regulatory authority disclosed in a statement on Thursday, saying “It should be noted that the implementation of the 15 % ad-valorem import duty on imported Premium Motor Spirit and Diesel is no longer in view.”
Late last month, President Bola Ahmed Tinubu approved a 15 per cent import duty on PMS and AGO in a bid to generate non-oil revenue and encourage local refining. The directive was conveyed via a letter dated October 21, 2025, addressed to the Federal Inland Revenue Service (FIRS) and the NMDPRA.
Fuel importers and marketers strongly opposed the measure, warning it would raise the cost of petroleum products and restrict importers’ ability to fill the supply gap while local refineries ramp up production.
In its statement, NMDPRA assured Nigerians that there is “a robust domestic supply of petroleum products (AGO, PMS, LPG, etc.) sourced from both local refineries and importation to ensure timely replenishment of stocks and storage deposits at retail stations during this period.”
It also emphasised that it will monitor supply and distribution networks strictly, particularly during the current peak demand season, to prevent disruptions or artificial shortages.
The suspension has elicited mixed responses. On one hand, many Nigerians welcomed the move, arguing it prevents an immediate price spike and supply constraints. On the other hand, many others criticised the turnaround as a missed opportunity to protect domestic refining capacity and reduce import dependence.
For instance, the Ogun State Chamber of Commerce, Industry, Mines and Agriculture (OGUNCCIMA) described the suspension as “a setback to Nigeria’s economic reform drive and a missed opportunity to protect local refiners”.
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