A Nigerian petroleum products marketer has identified three reasons the Nigerian government suspended the implementation of 15 per cent petrol and diesel import duty.
A petroleum products marketer, who does not want to be named, disclosed this in his reaction to the suspension of the petrol tariff.
According to him, FG made the decision to put on hold the refined petroleum products import duty due to inadequate consultation within government and stakeholders for its implementation.
Also, he explained that the tariff was suspended due to its political implications of possible higher petrol prices across the country.
“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.
DAILY POST reports that the federal government suspended the implementation of the 15 per cent tariff on Thursday, assuring Nigerians of an adequate petroleum products supply across the country.
The tariff before its suspension had generated both praise and contention from economists, stakeholders and Nigerians.
Fuel price: Why Nigerian govt suspended 15% petrol import duty – Marketer
