Marketer reveals why Nigerian govt suspended 15% petrol import duty

Keep up with the latest news and be part of our weekly giveaways and airtime sharing; follow our WhatsApp channel for more updates. Click to Follow

The Nigerian government halted the imposition of a 15% import tax on gasoline and diesel for three reasons, according to a Nigerian petroleum products marketer.

This was revealed by an unnamed petroleum products marketer in response to the suspension of the petrol pricing.

He claims that because there was insufficient government and stakeholder consultation over the implementation of the refined petroleum products import tariff, FG decided to postpone it.

Additionally, he clarified that the levy was put on hold because of the potential political ramifications of rising gas prices nationwide.

“Personally I believe that there was a lot of push back from a lot of quarters, just as there were many in support.

“As we heard from the international contributors at the recent MEMAN webinar, while not unheard of, value-added tax on fuel is usually about 2 percent. The government in originally proposing such a move must have been thinking about the revenue potential.

“However, it came across as being a tool to protect local refineries, and to some people, a particular refinery. Be that as it may, I believe the U-turn may have been for the following reasons: Inadequate consultation within and outside government.

“Political implications of likely higher pump prices.

“Some consideration towards elections. Just my own thoughts. I can’t guarantee what the exact reason is. Implication: importation will continue until enough product is available through the local refineries.

“This development will ensure supply is adequate and that prices are moderated since no single entity will have a monopoly of supply,” he stated.

According to ZINGTIE, the federal government promised Nigerians a sufficient supply of petroleum products nationwide by suspending the imposition of the 15% price on Thursday.

Economists, stakeholders, and Nigerians had both praised and criticized the tariff prior to its suspension.

Please don’t forget to “Allow the notification” so you will be the first to get our gist when we publish it. 
Drop your comment in the section below, and don’t forget to share the post.