Petroleum marketers have raised alarms that the pump price of Premium Motor Spirit (PMS), commonly known as petrol, could surpass ₦1,000 per litre following President Bola Tinubu’s approval of a 15% ad valorem import tariff on fuel imports.
The tariff, which applies to both petrol and diesel, was approved in a letter dated October 21, 2025, and conveyed to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Key Details:
- Tariff Scope: 15% duty on the Cost, Insurance, and Freight (CIF) value of imported petrol and diesel
- Implementation: Immediate, with a 30-day transition period ending November 21, 2025
- Expected Impact:
- Petrol prices could rise by ₦99–₦150 per litre, pushing costs above ₦1,000/litre in many areas
- Diesel prices may climb to ₦1,120–₦1,140/litre in Abuja and other regions
Government’s Justification:
The policy aims to:
- Protect local refineries, including the Dangote Refinery
- Stabilize the downstream oil market
- Align import costs with domestic realities
However, marketers warn the move could exacerbate inflation, strain household incomes, and worsen the cost-of-living crisis for average Nigerians.
