Fuel Marketers Urge FG To Cut 15% Import Tariff, Warn Of Higher Pump Prices
By OBIOMA TORI
THE Major Energies Marketers Association of Nigeria (MEMAN) has called on the Federal Government to review the newly approved 15 percent ad-valorem tariff on imported petrol and diesel, describing it as excessive and potentially harmful to the economy.
MEMAN Chief Executive Officer, Clement Isong, made the appeal during a webinar co-hosted by MEMAN and S&P Global Commodity Insights themed “Fostering Competition and Innovations: Lessons from Deregulated Markets for Nigeria’s Energy Sector.”
Isong warned that the tariff could push petrol prices up by about ₦122.9 per litre and diesel by ₦100, worsening inflation and increasing the burden on consumers. He urged the government to adopt a lower, phased tariff structure tied to verified improvements in local refining capacity.
“A 15% tariff is too high and will significantly impact pump prices and inflation,” Isong said. “If tariffs must be applied, they should start small and include sunset clauses with performance milestones.”
He also advised NNPC Ltd to accelerate the rehabilitation of Nigeria’s refineries and promote a transparent, competitive market framework with standardized pricing and cost disclosures.
S&P Global’s Research Director, Tanya Stepanova, noted that similar deregulated markets, such as India, impose much lower tariffs—typically between 2.5 and 5 percent—to protect refineries without stifling competition.
She added that the success of Nigeria’s policy would depend on the pricing strategy of Dangote Refinery and the timely restart of NNPC’s facilities.
