Petrol May Exceed ₦1,000/Litre as Tinubu Approves 15% Fuel Import Tariff

President Bola Tinubu has approved a 15% ad valorem import tariff on petrol and diesel imports.

The policy aimed at protecting local refineries and stabilising the downstream oil market.

This is expected to takes effect after a 30-day transition period ending November 21, 2025, seeks to align import costs with local refining realities.

According to projections from the Federal Inland Revenue Service, the duty could add about ₦99.72 per litre to the landing cost of petrol, pushing average prices in Lagos to around ₦964 per litre, still lower than fuel prices in many West African countries.

However, petroleum marketers and depot operators have warned that the new tariff could drive fuel prices above ₦1,000 per litre and worsen economic hardship for Nigerians.

They argue that the policy, though intended to support domestic refining, might create a monopoly favouring major players like Dangote Refinery while discouraging smaller importers.

Industry leaders from IPMAN and PETROAN noted that while the tariff may promote local production, it also risks triggering scarcity if domestic refiners fail to meet national demand.

The FIRS chairman, Zacch Adedeji, explained that the move is part of ongoing energy reforms under the government’s “Renewed Hope Agenda,” designed to strengthen the naira-based oil economy and encourage cost recovery for local refiners.

Adedeji emphasised that the policy would ensure fair competition, curb market instability, and reduce Nigeria’s dependence on imported petroleum products.

Meanwhile, industry stakeholders have urged the government to quickly revive the Port Harcourt, Warri, and Kaduna refineries to prevent potential fuel shortages and price surges.