Petrol May Top ₦1,000/Litre As FG Imposes 15% Import Tariff
By ESTHER McWILLIS-IKHIDE
NIGERIA’S fuel prices may soon cross the ₦1,000-per-litre mark following President Bola Tinubu’s approval of a 15 per cent ad valorem import tariff on Premium Motor Spirit (PMS).
The new tariff, which takes effect after a 30-day transition period ending 21 November 2025, is part of the Federal Government’s plan to protect local refineries and curb the influx of cheaper imported products.
However, petroleum marketers have warned that the policy could backfire, pushing petrol prices beyond the reach of ordinary Nigerians and deepening the country’s cost-of-living crisis.
Currently, petrol sells for around ₦920 per litre in most parts of the country. Multiple depot operators told reporters that the new tariff could trigger another round of price hikes once implemented.
“As it stands, fuel could go above ₦1,000 per litre. I don’t know why the government keeps adding to people’s suffering,” said one depot operator who requested anonymity.
Another industry source claimed that some importers are aligning with Dangote Refinery, resulting in uniform price adjustments across the market. “If the tariff takes effect without clear competition safeguards, we may see an artificial monopoly,” he warned.
Mixed Reactions from Industry Players
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has acknowledged both the pros and cons of the new policy.
IPMAN National Vice-President, Hammed Fashola, said the tariff could discourage fuel importation while promoting local refining, but cautioned that it might also create monopolies and worsen scarcity if local refineries fail to meet demand.
“The 15 per cent tariff has its implications. Prices may rise, and importers could withdraw if margins collapse. The government wants to protect local refineries, but it must ensure they can meet domestic supply,” Fashola said.
He added that the policy appears consistent with the Petroleum Industry Act (PIA), but urged the Nigerian National Petroleum Company Limited (NNPCL) to accelerate refinery rehabilitation in Port Harcourt, Warri, and Kaduna.
“If all NNPCL refineries come back on stream, competition from private players like BUA and Dangote will eliminate monopoly fears,” he added.
Retailers Call for Balance
The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) described the tariff as a “win-win policy” that could stabilise the market in the long term if properly managed.
PETROAN President, Billy Gillis-Harry, however, emphasised that product availability and affordability must remain the top priorities.
“If we chase out importers in the name of cheap fuel, supply will suffer and prices will skyrocket,” he warned. “Dangote alone cannot meet national demand, so there must be a balance between protecting local refineries and ensuring market competition.”
Policy Outlook
The 15 per cent tariff signals the government’s determination to encourage local production and end dependence on imports, but stakeholders warn that without proper safeguards, the move could intensify inflation, trigger fresh fuel scarcity, and strain household budgets.
As the November implementation date approaches, Nigerians brace for yet another test of the government’s reform agenda — and of the people’s endurance.
