Opposition mounts against FG’s 5% tax on petrol, diesel

The planned implementation of 5 % surcharge on refined petroleum products, including petrol and diesel, starting January 1, 2026, is being opposed by stakeholders in the extractive sector and civil society organisations, CSOs.

This came as Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, said the law, if enforced could cause its members to close businesses.

Also, the African Democratic Congress, ADC and Labour Party, presidential candidate in the 2023 election, Mr. Peter Obi said the tax will worsen the hardship of already struggling Nigerians.

President Bola Tinubu had on June 26, 2023, signed the Nigeria Tax Administrative Act, which include the 5% surcharge on refined petroleum products, to take effect from January 2026.

The Federal Gvernment said the Nigeria Tax Administration Act, aims to boost non-oil revenue and promote fiscal sustainability.

Stakeholders in the extractive sector, who opposed plan to impose a 5% tax on petroleum products beginning from January 1, 2026, said that the move will further increase the pump price of petrol which most Nigerians depend on for transport and energy.

They noted that with the average national pump price of petrol at N950 per litre, about 382 per cent from N197 per litre when President Tinubu assumed office on May 29, 2023, Nigerians will be impoverished further.

In a note to Vanguard, Executive Director, Extractive360, Mrs. Juliet Alohan-Ukanwosu said the policy will increase the cost of living for Nigerians.

She stated: “I think that at a time when Nigerians are already extremely burdened by the high cost of living, imposing additional tax burden on an essential good like petrol is a poorly thought-out idea.”

VANGUARD