By Erewunmi Peace

The Federal Government of Nigeria has suspended the proposed 15% import duty on Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO), following rising concerns that the tariff would trigger sharp increases in fuel prices across the country.

The decision was confirmed on Thursday by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), barely weeks after the duty was announced. The regulator said the suspension became necessary to prevent disruptions in the fuel supply chain and avoid additional economic pressure on citizens.

According to the agency, the planned tariff — which was to be applied on petrol and diesel imported into the country — has been put “on hold until further notice.”

A senior NMDPRA official noted that the government had considered feedback from oil marketers, transport operators, and economic experts before withdrawing the policy.

“The implementation of the 15% import duty is no longer in view for now. The government is prioritising market stability and energy affordability,”
the official stated.

The suspension followed widespread criticism from stakeholders who warned that the tariff could raise fuel pump prices, heighten inflation, and worsen transportation costs already burdening Nigerians.

International agencies including Reuters and local outlets such as Vanguard, Premium Times, and The Guardian also reported that the government bowed to pressure amid fears of a fresh nationwide fuel crisis.

Fuel marketers had earlier argued that the import duty would make petrol importation more expensive at a time when Nigeria is still struggling with insufficient local refining capacity.

The government says it will continue consultations with industry players before deciding whether the duty will be fully cancelled or reintroduced at a later date.