Tinubu Approves 15% Import Duty on Petrol and Diesel, Pump Price Likely to Rise
President Bola Tinubu has approved a 15% import duty on petrol and diesel to support local refining.
The new policy is expected to raise pump prices nationwide in coming days.
President Bola Tinubu has approved a 15% ad-valorem import duty on petrol and diesel, a move expected to increase fuel prices across Nigeria.
The new tariff, contained in a letter dated October 21 and signed by the President’s Private Secretary, Damilotun Aderemi, was addressed to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). It followed a proposal by FIRS Chairman Zacch Adedeji, who said the policy would protect local refineries and support price stability.
Adedeji explained that the decision is part of ongoing reforms to strengthen local refining, stabilize the market, and promote crude oil transactions in naira under the government’s Renewed Hope energy agenda.
He warned that misalignment between import parity pricing and local production costs has caused instability in the fuel market. According to him, imported fuel often sells below the cost of locally refined products, putting pressure on domestic producers.
“The goal is to protect both consumers and local refiners by ensuring fair pricing and creating a level playing field for investors,” Adedeji said.
Government projections show that the new 15% duty could increase the landing cost of petrol by about N99.72 per litre. Despite the rise, officials estimate that pump prices in Lagos would remain around N964.72 per litre, which is still lower than average prices in countries like Senegal, Ghana, and Côte d’Ivoire.
The new import tariff takes immediate effect as part of the administration’s broader effort to stabilize the oil sector and encourage investment in local refining.
