Petroleum marketers have raised alarm that the pump price of Premium Motor Spirit (PMS), popularly known as petrol, could exceed ₦1,000 per litre following President Bola Tinubu’s approval of a 15 per cent ad valorem import tariff on fuel imports.
The new policy, scheduled to take effect after a 30-day transition period ending November 21, 2025, is part of the Federal Government’s effort to protect local refiners and reduce reliance on cheaper imported fuel that could threaten domestic refining investments.
However, industry players warn the decision could backfire, pushing petrol prices beyond the reach of Nigerians already burdened by inflation and high living costs.
“As it is, the price of fuel may go above ₦1,000 per litre. I don’t know why the government will be adding more to people’s suffering,” a depot operator disclosed.
Another operator claimed that some importers were “working in alignment with Dangote,” which led to a uniform price increase during the last adjustment. “Let’s just wait and see what happens next,” he added.
Others cautioned that without a clear framework to regulate pricing and ensure fair competition, the new tariff could worsen the hardship faced by consumers and further destabilise the market.
Mixed Reactions from Stakeholders
The National Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Hammed Fashola, acknowledged the dual implications of the policy.
“The 15 per cent tariff on imported fuel has its own implications. Maybe the price will go up, and equally, it will discourage importers from bringing in fuel if it becomes too costly,” he said.
“The government is trying to protect local refiners, but people will see it as a way of monopolising the industry for certain people.”
Fashola warned that a failure by local refiners to meet national demand could trigger scarcity.
“If the local refiners fail, it may lead to scarcity, and people will not have an alternative. So, it has both positive and negative effects,” he added.
On whether the move contravenes the Petroleum Industry Act (PIA), Fashola said he believes the government would act within the law.
“Ordinarily, everybody would like to see our local refineries survive because that’s good for the economy. I don’t think this has anything to do with the PIA,” he said.
He also urged the Nigerian National Petroleum Company Limited (NNPC) and private refiners such as BUA to speed up refinery operations to boost supply and ensure healthy competition.
“If all NNPC refineries can come on board, it will solve a lot of problems. Once other refineries like BUA are operational, the fear of monopoly will not be there anymore,” he noted.
PETROAN Sees It as “Win-Win”
In contrast, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, described the policy as a “win-win situation” that will be tested over time.
“We are looking for product availability and affordability. If we are looking for cheap fuel and we drive everyone out of business, the product will not be available, and prices will skyrocket,” he explained.
Gillis-Harry added that while Dangote Refinery currently dominates the sector, it cannot satisfy national demand alone.
“Everybody is working with Dangote, and we know that Dangote cannot satisfy the country. There has to be a mix to ensure product availability,” he said.
Background
President Tinubu approved the introduction of a 15 per cent ad valorem import duty on petrol and diesel imports to support domestic refineries and conserve foreign exchange.
While the move aligns with the government’s long-term goal of achieving energy self-sufficiency, stakeholders warn that without strategic cushioning measures, the short-term impact could push fuel prices above ₦1,000; deepening Nigeria’s cost-of-living crisis.