Public Outcry Looms as 15 per cent Import Tariff Threatens to Push Petrol Price Above One Thousand Naira Mark

Nigerian consumers are bracing for another steep hike in the price of Premium Motor Spirit (PMS), popularly known as petrol, as President Bola Tinubu has officially approved a 15 per cent ad-valorem import duty on imported petrol and diesel. Petroleum marketers have already warned that this new tariff could push the retail pump price of fuel above the One Thousand Naira per litre mark.

President Tinubu’s approval of the tariff, dated October 21, 2025, and set for implementation following a 30-day transition window, is designed to protect local refineries, especially the Dangote facility, from being undercut by cheaper, duty-free imports. However, industry stakeholders argue the cost will be borne by the already burdened consumer.

Depot operators, speaking on the condition of anonymity, lamented the inevitable price shock. “As it is, the price of fuel may go above the one thousand naira per litre mark. I don’t know why the government will be adding more to people’s suffering,” one operator stated.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) acknowledged the policy’s aim to promote local refining but warned of severe market consequences. IPMAN National Vice-President, Hammed Fashola, cautioned that the tariff could be viewed as an attempt to monopolise the sector in favour of certain local players. Crucially, he warned that since imports still cover a significant portion (69 per cent) of national demand, the failure of local refiners to meet this shortfall could trigger a major fuel scarcity and further price instability.

Conversely, the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) adopted a cautious optimism, describing the policy as a “win-win situation” for long-term energy security. PETROAN’s President, however, urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to be on “red alert” to prevent any form of monopoly that could harm the market.

Despite the widespread apprehension, the government maintains that the tariff is corrective and non-revenue driven. According to projections by the Federal Inland Revenue Service (FIRS), even with the tariff adding approximately 99 Naira per litre to the landing cost, the estimated Lagos pump price would still be around 964 Naira per litre, which is still lower than regional averages in neighboring West African countries. Nevertheless, the reality for millions of Nigerians struggling with high inflation suggests that any increase will deepen existing hardship.