FG ENFORCES 0.5% LEVY ON WHOLESALE PETROLEUM PRICES UNDER NEW REGULATIONS

The Federal Government has intensified regulatory oversight of fuel suppliers and wholesale customers in the downstream petroleum sector with the enforcement of a 0.5 per cent levy on the wholesale price of petroleum products and natural gas. The levy is provided under the newly published Midstream and Downstream Petroleum Operations Regulations, 2025.
Under the regulations, suppliers of petroleum products are required to collect and remit the levy at wholesale points. Compliance with the levy is now a condition for licensing and continued operation in the sector.
Section 47 of the Petroleum Industry Act establishes the Authority Fund, managed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), into which all monies accruing to the commission must be paid.
The law specifies that one of the sources of the fund shall be “0.5 per cent of the wholesale price of petroleum products sold in Nigeria, which shall be collected from wholesale customers.”
The Federal Government said the levy will strengthen regulatory supervision and support sector development while ensuring transparency and accountability in the downstream petroleum market