Petrol depot price rises to ₦889/litre amid looming 15% fuel tax implementation

Petrol depot price rises to ₦889/litre amid looming 15% fuel tax implementation

Nigerians are growing increasingly concerned as the depot price of Premium Motor Spirit (PMS), commonly known as petrol, climbed to ₦889 per litre on Friday, up from ₦887 the previous week. The hike comes ahead of the federal government’s planned implementation of a 15% fuel import duty, expected to take effect after a 30-day transition period ending on November 21, 2025.

According to depot data obtained by Vanguard, Matrix charged the highest price of ₦889 per litre, while Aiteo offered the lowest at ₦871. Other major operators such as Dangote Petroleum Refinery, Eterna, AA Rano, and AYM Ashafa posted prices of ₦877, ₦874, ₦871, and ₦885 per litre respectively.

Downstream operators have warned that petrol prices could exceed ₦1,000 per litre once the new tax policy is enforced.

In a telephone interview, Dr. Billy Gillis-Harry, National President of the Petroleum Retail Outlets Owners Association of Nigeria (PETROAN), expressed cautious support for the government’s initiative. “This is a new measure that has not been implemented before. From all indications, the government has good intentions. So, our association would work with others to implement it,” he said.

The federal government has defended the proposed 15% ad-valorem import duty on PMS and diesel, stating that it is a corrective measure aimed at stabilizing the downstream market, protecting domestic refining, and ensuring fair pricing. The tariff will be applied to the Cost, Insurance, and Freight (CIF) value at discharge and is not intended as a revenue-generating tool.

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A government statement explained that while domestic refining of petrol is gradually increasing and diesel production has reached local sufficiency, price instability remains due to misalignment between local refiners and marketers. Import parity continues to serve as the pricing benchmark, often falling below the cost recovery threshold for domestic producers, especially amid currency and freight fluctuations.

“Left unchecked, these risks undermine our nascent refining sector at the very point of recovery,” the statement noted.

President Bola Ahmed Tinubu has approved the implementation of the 15% import duty, directing the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigeria Customs Service (NCS) to enforce the policy following the transition period. All payments will be made into a designated Federal Government revenue account and verified by the NMDPRA prior to discharge clearance.

The President also instructed the NMDPRA to prioritize local production when issuing import licenses and mandated periodic reviews of the tariff rate to assess its continued relevance. These reviews may include scaling or sunset provisions as domestic refining capacity expands, under the oversight of the Implementation Committee on Crude and Refined Products Sales in Naira.

As the transition period nears its end, stakeholders and consumers alike brace for the potential impact on fuel prices and broader economic implications.

Petrol depot price rises to ₦889/litre amid looming 15% fuel tax implementation