N1,000 Per Litre Diesel Unchanged Despite VAT Removal – Oil Marketers
Oil marketers have stated that the cost of Automotive Gas Oil (diesel) in Nigeria remains high, with prices still exceeding N1,000 per liter despite the government’s announcement of the removal of Value Added Tax (VAT) on the commodity.
The cost of diesel reportedly ranged from N990 to N1,100 per liter on Monday.
Dealers of diesel acknowledged the government’s decision to remove VAT but noted that it was currently just an announcement.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) and other industry experts suggested that prices may not immediately drop until new directives are issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and old stocks are sold off.
The move to remove VAT on diesel was announced by the Federal Government as part of discussions with labor unions to avert an industrial strike.
