By: Manoah Kikekon
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| Petrol pump |
LAGOS, Nigeria – Nigerians are bracing for a fresh wave of economic hardship as a new 15% import tariff on petrol, approved by President Bola Tinubu, threatens to push the pump price of Premium Motor Spirit (PMS) beyond the N1,000 per litre mark, petroleum marketers have warned.
The policy, designed to shield domestic refineries from a flood of cheaper imported fuel, has ignited fears of skyrocketing costs for consumers already grappling with record-high prices.
President Tinubu formally approved the levy in a directive dated October 21, 2025. The policy introduces a 15% ad valorem import duty on the cost, insurance, and freight (CIF) value of imported petrol and diesel. Following a 30-day transition period, the tariff is expected to take full effect by November 21, 2025.
In a memo, the Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, argued the measure is essential to align import costs with domestic market realities, protect nascent local refining investments, and strengthen the Naira. The government projects the duty will add approximately N99.72 to the landing cost of each litre of petrol.
However, for the average Nigerian, this technical adjustment translates to a direct hit on their wallet. With petrol already selling for around N920 per litre in many areas, the new levy could easily push the retail price well over the N1,000 psychological threshold.
“As it is, the price of fuel may go above N1,000 per litre. I don’t know why the government will be adding more to people’s suffering,” an anonymous depot operator told our correspondent.
The sentiment was echoed by Hammed Fashola, National Vice-President of the Independent Petroleum Marketers Association of Nigeria (IPMAN). He acknowledged the policy’s dual nature, stating it could discourage imports and boost local refining but also carries significant risks.
“Maybe the price will go up... I see that the government is trying to protect local refiners, but people will see it as a way of monopolising the industry for certain people,” Fashola stated. He warned that if local refiners like the Dangote Refinery and revamped NNPC facilities fail to meet domestic demand, the country could face a severe fuel crisis.
The policy has sparked a heated debate. A chieftain of the All Progressives Congress (APC) in Delta State, Chief Ayiri Emami, publicly faulted the President's decision, calling it a burden on the masses.
“Anybody advising Mr President to impose a 15 per cent tax on petroleum right now is not doing him any good. This kind of policy will not hurt marketers; it will hurt ordinary Nigerians,” Emami asserted.
On social media, the move has been met with a mix of criticism and cautious support. Some users accused the government of eliminating consumer choice in a supposedly deregulated market, while others, like tech entrepreneur Mark Essien, called it a "good step" to protect Nigeria's domestic refining capacity.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has pledged to implement the directive once formal communication is received. A spokesperson for the agency assured that the deregulated market would allow competition to influence final pump prices.
“Prices may rise, stay the same, or even drop depending on competition and market realities. Personally, I don’t envisage any sharp increase because the government would have factored in stabilisation mechanisms,” the NMDPRA official stated.
Despite these assurances, energy analysts remain cautious. They warn that while the tariff may boost government revenue and encourage local refining, it poses a tangible risk of triggering higher inflation and worsening the cost-of-living crisis for millions of Nigerians, with the spectre of N1,000 per litre fuel now looming large.