Pump prices may spike as Tinubu imposes 15% import duty on petrol, diesel

Pump prices may spike as Tinubu imposes 15% import duty on petrol, diesel

President Bola Ahmed Tinubu has approved the implementation of a 15% ad-valorem import duty on premium motor spirit (PMS), commonly known as petrol, and automotive diesel oil, marking a major shift in Nigeria’s fuel pricing framework.

The directive, conveyed in a letter dated October 21, 2025, was signed by Damilotun Aderemi, Private Secretary to the President, and addressed to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

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According to the correspondence, the decision follows a recommendation by the FIRS to apply the 15% duty based on the cost, insurance, and freight (CIF) value of imported petroleum products. Government officials say the move is intended to align fuel import costs with current market realities and bolster national revenue.

Industry analysts warn that the new policy could lead to a significant increase in pump prices, with estimates suggesting petrol may rise by as much as ₦99.72 per litre. The development is expected to reignite public debate over fuel subsidies and affordability.

The introduction of the import duty comes amid broader efforts by the Tinubu administration to reform Nigeria’s energy sector and reduce fiscal burdens associated with fuel imports. As the policy takes effect, stakeholders across the oil and gas industry are bracing for its impact on consumers and the economy at large.

 

Pump prices may spike as Tinubu imposes 15% import duty on petrol, diesel

(TheCable)