In a significant policy reversal, the Federal Government of Nigeria has suspended the planned implementation of a 15% import duty on Premium Motor Spirit (PMS), commonly known as petrol, and Automotive Gas Oil (AGO), or diesel. This bold decision, announced in November 2025, is expected to prevent a further surge in fuel costs and may lead to a welcome price crash.
Government Announces Suspension Amidst Controversy
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) made the official announcement via a statement on its X (formerly Twitter) handle on Thursday, November 13, 2025. George Ene-Ita, the Director of the Public Affairs Department at the NMDPRA, explicitly stated, "It should also be noted that the implementation of the 15 per cent ad-valorem import duty on imported Premium Motor Spirit and Diesel is no longer in view."
This move comes after President Bola Tinubu had initially approved the duty, a policy that sparked immediate and widespread criticism from depot owners and fuel marketers. They had warned that if enforced, the duty could push the price of petrol beyond the N1,000 per litre mark, placing an unbearable burden on consumers and businesses already grappling with high costs of living.
Immediate Market Reactions and Expert Predictions
Industry experts have been quick to react to the suspension, predicting a period of short-term relief at the pumps. The decision is seen as a direct response to intense market competition, primarily driven by the Dangote Petroleum Refinery.
Clement Isong, the Executive Secretary of the Major Oil Marketers Association of Nigeria (MOMAN), highlighted the shifting dynamics. He confirmed to The PUNCH that the refinery's new pricing model, which reflects import parity, has made fuel imports less profitable. "It would stop imports now, definitely, since imports are higher than Dangote’s price. That is the logical thing," Isong remarked.
The NMDPRA used its statement to reassure the public about the nation's fuel supply. The authority emphasized that there is a robust domestic supply of petroleum products from both local refineries and importers, sufficient to meet demand, especially during the upcoming festive season. It strongly cautioned against hoarding, panic buying, or any speculative price increases, warning that it would take regulatory action against such practices.
What This Means for Nigerian Consumers
For the average Nigerian, the suspension of the import duty is a significant development. With the policy reversal, the feared spike in fuel prices has been averted. Instead, consumers can anticipate a potential decrease in the cost of petrol and diesel as market pressures ease and supply remains steady.
This situation underscores the volatile nature of Nigeria's deregulated fuel market, where prices are highly sensitive to global crude oil prices, exchange rate fluctuations, and domestic policy decisions. The Tinubu administration's U-turn demonstrates the government's responsiveness to public and industry outcry, marking a pivotal moment in its economic policy approach.
In a related development, the Dangote Refinery recently adjusted its ex-depot price for petrol upwards by N32, setting the new rate at N860 per litre, a move that further illustrates the dynamic and competitive landscape of the Nigerian fuel market.
