KEY POINTS
- Implementation of fuel import duty now postponed.
- Suspension shields consumers from rising petrol costs.
- Deferment allows local refineries to stabilise production.
The Federal Government has approved the deferment of the 15 percent fuel import duty on petrol and diesel, formally endorsed by President Bola Tinubu for further review in the first quarter of 2026.
The government approved the duty on October 21, 2025, to boost domestic refining, stabilise fuel prices, and encourage competition between imported and local fuels.
Dr Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service, requested the postponement in a November 7, 2025, letter, citing the need to fully prepare local refining infrastructure and align technical and operational frameworks.
The letter stressed that the deferment would minimise fuel supply disruptions and allow for a smooth rollout. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had earlier announced the suspension of the planned tariff, a move confirmed by its Director of Public Affairs, George Ene-Ita, who said the suspension had presidential approval.
The deferment also provides government agencies time to monitor refinery performance, verify production data, and track consumer price trends, ensuring the eventual implementation is economically sustainable and socially responsible.
Suspension protects consumers and supports local refineries
People in the industry were happy with the delay since it protects consumers from inflationary pressure at the right time. Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), said the move demonstrated the government’s responsiveness to economic realities.
Chinedu Ukadike of the Independent Petroleum Marketers Association of Nigeria (IPMAN) echoed this view, noting the suspension prevents market distortions. Energy experts, including Olatide Jeremiah from Petroleumprice.ng, said the change makes sense, giving local refineries like Dangote Petroleum time to stabilise production before new fiscal measures take effect.
The delay is a strategic move to find a balance between protecting consumers and supporting local refining capacity. NMDPRA also affirmed that there is a strong supply of fuel, diesel, and cooking gas in the country to avoid shortages. The regulator also said that people shouldn’t buy things in a hurry or raise prices for no reason.
They stressed that distribution should continue to be watched to keep the market steady and open. The government wants to protect people’s health and well-being while encouraging long-term growth in the downstream oil sector by delaying the 15 percent fuel import duty.
