15% Fuel Import Tariff May Push Petrol Price to N1,000 Per Litre, Marketers Warn
- MEMAN has warned that the new 15% import tariff on petroleum products is likely to raise petrol prices to about N998 - N1,028 per litre
- Executive Secretary Clement Isong said the tariff would worsen inflation and economic hardship, urging that such measures be a last resort
- He called on the FG to revive Nigeria’s refineries and boost crude oil production to ensure energy security and fair competition
Legit.ng journalist Victor Enengedi has over a decade of experience covering Energy, MSMEs, Technology, Banking and the Economy.
The Major Energies Marketers Association of Nigeria (MEMAN) has cautioned that the recently introduced 15% import tariff on petroleum products could effectively serve as a ban on fuel importation.
President Bola Tinubu, a few weeks ago, approved a 15% import duty on petrol and Automotive Gas Oil and diesel, following a request by the Federal Inland Revenue Service (FIRS).
Source: UGC
MEMAN criticises 15% fuel import duty
Executive Secretary of MEMAN, Mr Clement Isong, explained that the new tariff would significantly raise pump prices of petrol and diesel, with potential retail prices ranging from N1,100 to N1,200 per litre.
According to Daily Trust, he emphasised that such increases would impose further economic hardships on Nigerians.
Isong made these remarks during a joint MEMAN–S&P Global Commodity Insights webinar titled “Fostering Competition and Innovation: Lessons from Deregulated Markets for Nigeria’s Energy Sector.”
The discussion focused on recent developments in the downstream petroleum sector, particularly the impact of the 15% tariff policy that has sparked widespread debate within the oil and gas industry.
According to Isong, the tariff rate is excessively high and counterproductive to Nigeria’s energy security. Based on current market data, he revealed that a 15% levy would add about N122.46 to the cost of PMS, raising the landed cost from N827.24 to N949.70 per litre.
This adjustment could push retail prices to approximately N998 per litre in Lagos and N1,028 per litre in other regions. Diesel prices, he noted, could also surge to between N1,164 and N1,194 per litre, depending on distribution margins.
He said:
“We think it’s a bit high. And we think it will have a significant impact on the pump prices. We have done some preliminary calculations. This would add N122 to the price of PMS as of today, this is our calculation."
Isong argued that while tariffs can protect domestic refineries, such a steep rate should have been a last resort, as it risks discouraging competition and driving inflation through higher transportation and logistics costs.
Call for revival of Nigeria’s refineries
The MEMAN executive secretary underscored the urgent need to rehabilitate Nigeria’s four state-owned refineries or engage credible technical partners to restore them to full operation.
Source: Getty Images
He stressed that the Dangote Refinery and other modular refineries must operate alongside public refineries to ensure a competitive and stable fuel market.
He added that Nigeria’s ability to increase crude oil production will be crucial in supporting both existing and upcoming refineries, fostering self-sufficiency in fuel supply and reducing the nation’s dependence on imports.
Dangote, depots slash petrol price
Meanwhile, Legit.ng earlier reported that the petrol prices from private depots and the Dangote Refinery slightly dropped as competition increased in Nigeria’s downstream sector.
Several private depot operators reduced their selling price to N889 per litre, compared to the previous N890.
According to MEMAN, the lower prices reflect a drop in landing costs and crude benchmarks, signalling growing market competition.
Source: Legit.ng
