President Bola Tinubu has approved a shift in the implementation of the proposed 15% fuel import duty on petrol and diesel to the first quarter of 2026, reversing earlier assumptions that the policy had been suspended indefinitely. The decision follows fresh consultations with major industry players, who warned that immediate enforcement could heighten fuel prices and worsen inflation for consumers already struggling with economic pressures.
The deferment was requested by the Executive Chairman of the Federal Inland Revenue Service, Dr. Zacch Adedeji, who submitted a detailed memo advising the government to allow more time for market alignment, technical readiness, and improved local refining capacity. His letter, dated November 7, emphasised the need to prevent supply disruptions and ensure that infrastructure and operational frameworks are fully prepared before the levy is rolled out.
This policy was originally approved on October 21, 2025, as part of the administration’s broader fiscal and energy reforms meant to boost domestic refining and reduce dependence on imported fuel. But after further review, the Nigerian Midstream and Downstream Petroleum Regulatory Authority confirmed that the duty was no longer implementable at the moment, describing the suspension as a people-centred decision aimed at protecting consumers during a sensitive economic period.
Oil marketers and industry experts have widely applauded the President’s decision, calling it a timely intervention that averts a potential spike in pump prices. Stakeholders from PETROAN and IPMAN said the move shows the government is listening to economic realities, with many noting that a 15% levy at this stage would have been excessive and inflationary. Analysts also stressed that allowing domestic refineries—especially the Dangote Refinery and modular plants—more time to scale production will help stabilise the market before any new charges are introduced.
With the implementation now moved to 2026, regulators have assured Nigerians of steady fuel supply and warned against panic buying or hoarding. The NMDPRA confirmed that the country remains within its national sufficiency threshold for petrol, diesel, and cooking gas. The authority also reiterated its commitment to maintaining a stable downstream market, safeguarding consumers, and ensuring that any future rollout of the import duty aligns with economic realities and the welfare of citizens.
source: punch