Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has clarified that the proposed fuel tax will not take effect immediately, insisting that the levy will only be implemented once the naira appreciates and global oil prices decline.
Speaking during a press briefing in Abuja, Oyedele explained that the federal government’s priority remains easing hardship on citizens, not worsening it. “We are fully aware that the economy is fragile. No responsible government will introduce fuel taxes when inflation and cost of living are at record highs,” he stated.
He emphasized that the long-term vision of the policy is to create a sustainable fiscal model where revenue from energy consumption supports public infrastructure and renewable transition programs. However, the timing will depend on the stability of key economic indicators, including exchange rates and oil benchmarks.
The clarification comes after widespread public outrage following reports that a new petroleum levy was being considered under the ongoing tax reforms. Oyedele’s assurance has helped calm market fears and speculation of another pump price hike. Experts have lauded the government’s cautious stance, arguing that introducing the levy now would further pressure household incomes and transportation costs. The policy is expected to roll out in phases, with a focus on efficiency and social impact monitoring.