Oil marketers have applauded President Bola Tinubu’s decision to postpone the planned 15 per cent import duty on petrol and diesel to the first quarter of 2026, describing it as a timely move that prevents an immediate spike in pump prices and inflation.
The tariff, initially approved on October 21, 2025, had triggered widespread anxiety within the oil and gas industry over concerns that it would raise fuel prices and worsen economic pressures on consumers. Although the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced its suspension on Thursday, newly obtained documents confirm that the President formally approved a deferment until early 2026, subject to further review.
The shift followed a memo from the Executive Chairman of the Federal Inland Revenue Service, Dr Zacch Adedeji, who warned that the market was not yet ready. He cited the need to avoid supply disruptions, ensure institutional readiness, and allow new refineries more time to stabilise production.
Marketers: “Government made the right call”
Reacting, the President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, told The PUNCH that the move shows the administration is responsive to economic realities.
“Implementing 15 per cent now would have been too harsh,” he said. “We commend the President for listening. The economy is fragile, and any extra cost on imports would have hurt Nigerians.”
The Independent Petroleum Marketers Association of Nigeria (IPMAN) shared similar sentiments. Its Publicity Secretary, Chinedu Ukadike, said the decision shields consumers from further inflationary pressure.
“If the duty had taken effect, it would have fuelled inflation and distorted the market,” he noted. “This is a welcome development.”
Experts warn tariff was premature
Oil and gas analyst and CEO of Petroleumprice.ng, Olatide Jeremiah, also praised the deferment, describing the tariff as “outrageous” and poorly timed.
“The tariff would have discouraged fuel imports when local refineries still cannot meet demand,” he said. “Introducing 15 per cent now would have pushed pump prices up and strained the economy.”
He added that moving the implementation date gives emerging refineries, including the Dangote facility and modular plants, space to stabilise before the policy is reconsidered.
With the deferment settled, industry stakeholders say the priority now is ensuring that the downstream market remains stable as refineries ramp up output ahead of the 2026 review.
Leave a Reply