Fuel marketers in Nigeria have cautioned that petrol and diesel prices may rise following the Federal Government’s introduction of a 15% import duty on petroleum products.
President Bola Ahmed Tinubu approved the new tariff structure after a request from the Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, who argued that applying the duty would align import costs with current market realities.
The decision has sparked debate across the downstream oil sector. Supporters say the move could help stimulate local refining and reduce Nigeria’s dependence on imported fuel. However, others have raised concerns that the extra cost will inevitably translate into higher pump prices for consumers.
In a letter titled “Re: Introduction of a market-responsive import tariff framework on Premium Motor Spirit (PMS) & Diesel”, and addressed to the Attorney-General of the Federation, the FIRS, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the Presidency confirmed the new policy. The letter was signed by Damilotun Aderemi, Private Secretary to President Tinubu.
Marketers say the development could push up already rising fuel costs, adding pressure to households and businesses at a time when Nigerians are grappling with high inflation and economic hardship.