Tinubu Approves 15% Import Tariff on Petrol, Diesel; Fuel Prices May Rise by ₦150/Litre

Nigerians may soon pay up to ₦150 more per litre of petrol, and possibly higher for diesel, following President Bola Tinubu’s approval of a 15% import tariff on fuel products. The implementation of the new tariff is expected to take effect immediately.

However, according to the approved document, the expected increase in pump prices should not exceed ₦100 per litre.

A copy of the document, obtained by *THISDAY* on Wednesday and addressed to the Attorney General of the Federation, Lateef Fagbemi; the FIRS Chairman, Zacch Adedeji; and the NMDPRA Chief Executive, Farouk Ahmed, confirmed the approval.

The proposal, endorsed by the President, seeks to introduce a “measured import tariff” on Premium Motor Spirit (PMS) and diesel to bolster energy security, protect local refineries, stabilize the downstream sector, and promote fair pricing—objectives aligned with the administration’s economic agenda.

The document recalled that on July 29, 2024, the Federal Executive Council approved the settlement of crude oil for domestic use in naira, as well as the sale of refined products in naira, under Memo EC 9 (2024) 4. The initiative aimed to strengthen local refining capacity and ensure a stable and affordable fuel supply nationwide.

It further noted that while local diesel production has reached self-sufficiency and petrol refining continues to grow, price instability remains due to misalignment between domestic refiners and fuel marketers. Import parity pricing, it said, often falls below cost-recovery levels for local producers—especially amid currency and freight fluctuations—threatening the recovery of Nigeria’s refining sector.

“The government’s responsibility,” the communication stated, “is to protect both consumers and domestic producers from unfair pricing practices while maintaining a level playing field that ensures cost recovery and attracts further investment.”

To achieve this, the letter, prepared by one of the President’s aides, recommended introducing a tariff framework to prevent duty-free fuel imports from undercutting local refineries, while maintaining competition and protecting consumers.

According to the proposal, a 15% ad-valorem import duty will be applied to the Cost, Insurance, and Freight (CIF) value of imported PMS and diesel at the point of discharge. Based on current CIF levels, this translates to an increase of roughly ₦99.72 per litre—bringing imported fuel prices closer to local production costs without triggering excessive inflation.

Despite the adjustment, Lagos pump prices are projected to remain around ₦964.72 per litre ($0.62), still below regional averages—Senegal ($1.76), Côte d’Ivoire ($1.52), and Ghana ($1.37).

The document emphasized that the tariff is not a revenue measure but a corrective step to align import costs with local realities while keeping fuel prices affordable.