The National Petroleum Authority (NPA) has directed Oil Marketing Companies (OMCs) to implement the amended Special Petroleum Tax (SPT) Act which reduces the tax by 2%.
The amendment also converted the SPT from a 15% ad valorem to a 13% specific tax, which means a specific amount will now be charged for a litre of petroleum product.
Per the new pricing regime, the SPT on petroleum products effective from Friday, February 16, 2018, will be as stated below.
Parliament on Thursday passed the bill following agitations by Labour and the Chamber of Petroleum Consumers (COPEC) against rising fuel prices.
COPEC says the reduction is welcome news but it had hoped for a total scrapping of the controversial tax.
The SPT was introduced in 2014 in reaction to the falling price of crude oil on the international market, but it still remains in the books despite a stable price for the commodity.