Petroleum marketers have cautioned that the price of Premium Motor Spirit (PMS), popularly known as petrol, could surpass ₦1,000 per litre following President Bola Tinubu’s approval of a 15 percent ad valorem import tariff on fuel imports.
The tariff, which will take effect after a 30-day transition period ending November 21, 2025, is part of the government’s strategy to protect local refineries and curb the influx of cheaper imported products that undermine domestic refining.
However, depot operators and industry experts have expressed concerns that the move could further increase prices and deepen economic hardship for Nigerians already grappling with rising living costs.
Speaking anonymously, several depot operators told The Punch that the new tariff would push current pump prices — which average ₦920 per litre nationwide — beyond ₦1,000.
One of them remarked, “I don’t know why the government would impose more burden on Nigerians. This will only make things worse.”
Another operator claimed that some importers were collaborating with the Dangote Refinery, noting that the last fuel price increase was uniform across the market. “Everyone raised their prices at once,” he said.
Hammed Fashola, National Vice-President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), acknowledged that the new policy has both benefits and drawbacks.
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He explained that while it might discourage fuel importation and promote local refining, it could also pave the way for monopoly if local producers fail to meet national demand.
“If the local refiners cannot supply enough fuel, we’ll face scarcity,” he warned. “The government is trying to protect domestic refineries, but it must ensure competition and sufficient production.”
Fashola added that the decision aligns with the Petroleum Industry Act (PIA) and urged the Nigerian National Petroleum Company Limited (NNPC) to accelerate refinery rehabilitation in Port Harcourt, Warri, and Kaduna.
He also called on private refiners like BUA to increase capacity to prevent monopolistic control.
Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), described the tariff as a “testable policy” and a potential “win-win situation” if properly managed. He emphasised the need to ensure fuel availability and affordability.
President Tinubu’s approval followed a proposal from the Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, who argued that the measure was part of the administration’s economic reforms aimed at strengthening local refining and reducing foreign exchange dependence.
Adedeji explained that the 15 percent duty would raise the landing cost of petrol by about ₦99.72 per litre, resulting in an estimated ₦1.92 billion daily increase in import costs.
Despite the hike, projected pump prices in Lagos would remain around ₦964 per litre — still lower than those in neighbouring countries such as Senegal ($1.76), Côte d’Ivoire ($1.52), and Ghana ($1.37).
He added that all tariff payments would be remitted to a designated Federal Government account and that the policy was designed to “stabilize local refining and align import costs with domestic market realities.”
Energy experts, however, have voiced mixed reactions. Analyst Olatide Jeremiah said the move could encourage local production but warned that it might also add about ₦100 per litre to pump prices and create supply instability.
Similarly, APC chieftain and oil businessman Chief Ayiri Emami criticised the policy, describing it as “anti-people.” He urged the President to suspend its implementation, arguing that it would worsen the hardship of ordinary Nigerians rather than affect marketers.
Meanwhile, social media reactions have been divided. Some users applaud the policy as a step toward strengthening domestic refineries, while others accused the government of creating a monopoly that benefits the Dangote Refinery.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) confirmed that it would implement the directive once officially notified, noting that market forces would ultimately determine fuel prices under the deregulated system.
The new tariff framework, backed by Sections 21 and 22 of the Petroleum Industry Act, is expected to be reviewed periodically as Nigeria’s domestic refining capacity expands.
