Apparently concerned about the controversies generated by the Federal Government’s new 15 per cent duty on imported petroleum products, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has stated that it is not immediately considering the implementation of the duty.
The Director, Public Affairs Department of the authority, George Ene-Ita, in a statement issued on Thursday while urging motorists and other consumers of fuel and diesel to avoid panic buying, confirmed that government was no longer considering going ahead with implementing the new import duty on the products.
He stated: “It should also be noted that the implementation of the 15% ad-valorem import duty on imported Premium Motor Spirit and Diesel is no longer in view.
“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 at storage depots and retail stations during this period.
- Advertisement -
“The Authority wishes to use this opportunity to advise against any hoarding, panic buying or non-market reflective escalation of prices of petroleum products.
“The Authority will continue to closely monitor the supply situation and take appropriate regulatory measures to prevent disruption of supply and distribution of petroleum products across the country, especially during this peak demand period.
“While appreciating the continued efforts of all stakeholders in the midstream and downstream value chain in ensuring a smooth and uninterrupted supply and distribution, the public is hereby assured of NMDPRA’s commitment to guarantee energy security”, it added.
It would be recalled President Bola Tinubu had on October 29 approved an import tariff on petrol and diesel, a policy expected to raise the landing cost of imported fuel and by so doing help in improving the nation’s refining capacity for petroleum products and boosting the foreign reserves.
The President’s approval was conveyed in a letter signed by his Private Secretary, Damilotun Aderemi, following a proposal submitted by the Executive Chairman of the Federal Inland Revenue Service, Dr. Zacch Adedeji, to the Presidency
The proposed fiscal regime scheduled to take effect on November 21 this year sought the application of a 15 per cent duty on the cost, insurance, and freight value of imported petrol and diesel to align import costs with domestic market realities.
Although intended to boost local production, the import duty is also expected to increase fuel costs, which could lead to higher inflation and transportation prices for consumers.
Analysts have expressed mixed feelings about the fiscal regime based on its cost-benefit analysis, particularly to manufacturing and other key sectors of the economy.
