Tag five per cent levy on the premium motor spirit

A very specific and technical question!

In Nigeria, the 5% levy on Premium Motor Spirit (PMS), also known as Petrol, is commonly referred to as the "5% Petroleum Products Levy" or "5% PML".

The 5% PML is a tax imposed by the Federal Government of Nigeria on the sale of PMS, which is the primary source of revenue for the government. The levy is calculated as a percentage of the total value of PMS sold in the country.

Here's the breakdown:

• The 5% PML is a tax on the sale of PMS, which is the primary source of revenue for the government.
• The levy is calculated as 5% of the total value of PMS sold in the country.
• The revenue generated from the 5% PML is used to fund various government projects and initiatives.

For example, if the price of PMS is N150 per liter, the 5% PML would be:

• N150 (price of PMS) x 0.05 (5% levy) = N7.50 (5% PML per liter)
• Total cost to the consumer: N150 (price of PMS) + N7.50 (5% PML) = N157.50 per liter

It's worth noting that the 5% PML is in addition to other taxes and levies imposed on PMS, such as the Value Added Tax (VAT) and the Petroleum Products Pricing Regulatory Agency (PPPRA) margin.