Fuel Import Duty: Marketers Warn 15% Levy Will Drive Petrol Prices Above ₦1,000 and Threaten Local Operations
Oil marketers across Nigeria have raised alarm over the Federal Government’s newly approved 15% import duty on petrol and diesel, warning that the policy could push fuel prices beyond ₦1,000 per litre and cripple operations for smaller players in the downstream sector. The marketers say the decision threatens competition and could worsen the already rising cost of living for Nigerians.
President Bola Ahmed Tinubu recently approved the 15% ad-valorem import duty following a request from the Federal Inland Revenue Service (FIRS). According to the FIRS Chairman, Zacch Adedeji, the measure is part of reforms aimed at promoting local refining, stabilizing fuel prices, and strengthening the naira-based oil economy in line with the government’s Renewed Hope Agenda. The duty is to be applied on the cost, insurance, and freight (CIF) value of imported petrol and diesel.
While some economists view the move as a positive step toward encouraging domestic refining and reducing Nigeria’s dependence on fuel imports, industry operators argue it will have devastating short-term effects. Independent Petroleum Marketers Association of Nigeria (IPMAN) spokesperson Chinedu Ukadike said the high levy, combined with limited refining capacity, would make fuel unaffordable and force many filling stations to close. He added that with growing investments in CNG and electric vehicles, the industry risks seeing many fuel outlets become obsolete.
Economic expert Dr. Paul Adams of Nasarawa State University noted that the import duty could serve as a “double-edged policy.” While it supports the development of local refineries such as Dangote Refinery and modular plants, Adams warned that the immediate effect will be higher logistics costs and inflationary pressure. “Importers will pass the extra cost to consumers, tightening profit margins and possibly disrupting fuel supply until domestic production stabilizes,” he explained.
The Presidency, however, insists that the import duty is designed to make imported fuels less competitive and push the market toward local refineries. Sunday Dare, the Special Adviser to the President on Media and Public Communication, said the policy would help Nigeria reduce foreign exchange spending, expand local job creation, and ensure that oil wealth directly benefits citizens. He maintained that once local refining fully scales up, the policy will stabilize prices and drive economic growth.
source: Nairametrics