Petroleum marketers have warned that the pump price of Premium Motor Spirit, popularly called petrol, could exceed N1,000 per litre following President Bola Tinubu’s approval of a 15 per cent ad valorem import tariff on fuel imports.
The new policy, which takes effect after a 30-day transition period expected to end on 21 November 2025, is part of the government’s strategy to protect local refiners and reduce the influx of cheaper imported products that threaten domestic refining investments.
However, marketers say the move could backfire and push retail prices beyond the reach of average Nigerians.
Commenting in a telephone interview on Thursday, multiple depot operators with knowledge of the matter, who spoke on condition of anonymity, said the decision could further raise the price of petrol, which already sells for around N920 per litre, in many parts of the country.
“As it is, the price of fuel may go above N1,000 per litre. I don’t know why the government will be adding more to people’s suffering,” one of the depot operators said.
Another depot operator added, “Unfortunately, some of the importers are working in alignment with Dangote, which is why the last price increase was general; all players raised their prices at once. Let’s just wait and see what happens next.”
Another operator added that without a clear framework to stabilise market forces and ensure fair competition, the new import duty could trigger another round of price hikes and worsen the hardship faced by consumers.
The National Vice-President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, also agreed that the tariff had its implications, saying it might lead to a price surge.
Fashola said the policy had both positive and negative effects, adding that it could discourage importation while promoting local refining.
The IPMAN leader opined that some marketers moght perceive it as an opportunity to monopolise the sector in favour of Dangote and a few other refineries.
“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.
“But it has both negative and positive effects on the sector. I see that the government is trying to protect local refiners, but it will have its own implications because people will see it as a way of monopolising the industry for certain people. At the same time, the government aims to protect the local refiners.”
However, Fashola stressed that the failure of the local refiners to supply enough fuel into the domestic market could trigger a fuel crisis.
“If the local refiners fail, it will have its own implications. It may lead to scarcity, and people will not have an alternative. So, it has both positive and negative effects. That’s the way I see it,” he added.
On whether the development is in line with the Petroleum Industry Act, Fashola said, “I don’t think the government will do anything outside the law. They would not like to do anything against the PIA. Ordinarily, everybody would like to see that our local refineries are surviving and they are doing well, which is good for our economy. I don’t think it has anything to do with the PIA.”
In his advice to local refiners, especially the Nigerian National Petroleum Company Limited, Fashola urged them to live up to expectations. He sought the revamp of the Port Harcourt, Warri and Kaduna refineries.
