Nigeria’s fuel market may experience another sharp increase as the Federal Government introduces a 15 per cent ad valorem import tariff on petrol and diesel, effective November 21, 2025.
President Bola Tinubu approved the new fuel import tariff to protect local refiners and reduce dependence on cheaper imported products. However, petroleum marketers have warned that the policy could push the pump price of Premium Motor Spirit (PMS) beyond ₦1,000 per litre.
Currently selling for around ₦920 per litre in many parts of the country, depot operators told reporters that the new duty might worsen the hardship faced by Nigerians.
Independent Petroleum Marketers Association of Nigeria (IPMAN) Vice President, Hammed Fashola, acknowledged that while the tariff may encourage local refining, it could also lead to price surges and potential scarcity if domestic production falls short.
The Federal Inland Revenue Service (FIRS) Chairman, Zacch Adedeji, explained that the tariff aims to stabilize the oil market and protect local investors. According to projections, the 15 per cent import duty could increase landing costs by about ₦99.72 per litre, adding roughly ₦1.9 billion daily in import costs.
While some experts believe the policy will strengthen the naira and promote energy security, critics, including APC chieftain Chief Ayiri Emami, argue it will deepen the suffering of ordinary Nigerians.
Energy analysts have cautioned that although the move could boost local refinery patronage, it risks increasing inflation and transport costs nationwide.
