Fuel tax not on the table for now — Oyedele

The Federal Government has ruled out plans to introduce a new fuel tax for now, maintaining that its current priority is to ease the pressure of rising petrol prices on Nigerians without introducing additional financial burdens on households and businesses.

The position is consistent with the government’s earlier clarification that it has no immediate plans to introduce new taxes on petroleum products.

Taiwo Oyedele, Nigeria’s Minister of Finance and Coordinating Minister of the economy, stated this at the World Economic Forum, adding that the existing value-added tax (VAT) waiver on fuel remains in place and that no ministerial order is being contemplated to activate the fuel surcharge provided for under the law. Premium Times

The development comes amid public concern over the rising cost of petrol following the removal of fuel subsidy in 2023 and renewed calls for government intervention to reduce the burden on consumers.

Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, has acknowledged the hardship caused by higher fuel prices but maintained that the government is seeking sustainable ways to moderate the impact without returning to a broad-based petrol subsidy.

Recall that speaking during a government briefing on fuel prices and subsidy policy in Abuja on October 8, Oyedele outlined measures intended to cushion the effects of rising prices on households, transport operators and businesses.

Among the measures announced was a 30-day petrol discount at Nigerian National Petroleum Company Limited (NNPC) retail outlets, with priority for public transport operators. The government also announced efforts to moderate fuel costs and promote alternative energy options. Federal Ministry of Information and National Orientation

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The government has argued that restoring the former subsidy regime would place additional pressure on public finances and could worsen existing economic challenges.

Oyedele warned that a return to fuel subsidy could have serious implications for the naira and petrol prices, arguing that the government must avoid policies that create unsustainable fiscal obligations.

The fuel tax debate is also linked to wider discussions about revenue generation and the implementation of Nigeria’s tax reforms. In June, the Ministry of Finance dismissed reports that the government planned to introduce new taxes on petroleum products and telecommunications services, describing the claims as misleading.

It explained that recommendations contained in reports by international institutions do not automatically become government policy.

The ministry further stated that any future tax changes would be communicated through official channels and implemented in accordance with the law.

For consumers already contending with high transportation, food and operating costs, the absence of an immediate fuel tax proposal offers some reassurance against another potential increase in the cost of living.

However, the government continues to face pressure to balance revenue mobilisation with the need to protect vulnerable Nigerians and support businesses affected by higher energy costs.

The administration has maintained that its approach will focus on measures that provide relief while preserving fiscal stability and sustaining the economic reforms introduced since 2023.