Petroleum marketers have cautioned that the pump price of Premium Motor Spirit (PMS), commonly known as petrol, could rise above ₦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, set to take effect after a 30-day transition period ending on November 21, 2025, is part of the government’s efforts to protect local refineries and curb the influx of cheaper imported fuel, which poses a threat to domestic refining investments.
However, marketers warn that the measure could have adverse effects, potentially pushing petrol prices beyond the reach of ordinary Nigerians.
In separate telephone interviews on Thursday, several depot operators—who requested anonymity—expressed concern that the decision might further increase fuel prices, which currently average around ₦920 per litre across many regions of the country.
“At this rate, the price of petrol may exceed ₦1,000 per litre. I don’t understand why the government keeps adding to people’s hardship,” one depot operator lamented.
Another operator noted that some importers appear to be aligning with Dangote Refinery, which, according to him, explains the recent uniform price increases across the market.
“Unfortunately, some importers seem to be working in sync with Dangote, which is why the last price hike was simultaneous across the board. We’ll just have to wait and see how this plays out,” he said.
A third operator cautioned that without a clear framework to balance market forces and ensure fair competition, the new tariff could trigger another round of price hikes, deepening the hardship faced by consumers.
The National Vice-President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Hammed Fashola, also acknowledged that while the tariff could encourage local refining, it might simultaneously cause a spike in pump prices.
“The 15 per cent tariff on imported fuel has its implications. Prices may rise, and importers could withdraw from the market if bringing in fuel becomes too expensive,” Fashola explained.
He added that although the policy could discourage importation and promote local refining, it might also be viewed as an attempt to monopolise the sector in favour of Dangote and a few other local players.
“The government’s intention is to protect local refiners, but if they cannot supply enough fuel to meet domestic demand, the country could face another fuel shortage,” Fashola warned.
