Despite the Federal Government’s announcement that it has removed the Value Added Tax (VAT) on Automotive Gas Oil (diesel), oil marketers have stated that the cost of diesel remains above N1,000 per liter.
On Monday, it was reported that the price of AGO ranged between N990 and N1,100 per liter, and many filling stations were experiencing shortages due to the high price of diesel.
Dealers in the commodity acknowledged the government’s decision to remove VAT on diesel but described it as merely an announcement at this stage. According to Mohammed Shuaibu, the Secretary of the Independent Petroleum Marketers Association of Nigeria, Abuja-Suleja, the cost of diesel remains high despite the announcement. He noted that the implementation of the VAT removal may begin soon, possibly the day after the public holiday.
In summary, while the government has announced the removal of VAT on diesel, the actual reduction in the cost of diesel at the pump has yet to be realized, and oil marketers are waiting for the implementation of this policy change.
