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Tinubu Imposes 15% Import Tariff on Petrol and Diesel to Boost Local Refining

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President Bola Tinubu has approved a 15 percent import tariff on petrol and diesel, a move aimed at promoting local refining and stabilising Nigeria’s energy sector. The directive, signed on October 21, 2025, authorises the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to begin immediate enforcement.

The new tariff, calculated on the cost, insurance and freight (CIF) value of imported fuel, is expected to add roughly ₦99.72 per litre to the landed cost of petrol. This could push pump prices in Lagos toward ₦964 to ₦1,000 per litre, sparking public concern over rising living costs.

Government officials argue that the measure will create a fairer market for domestic producers like the Dangote Refinery, which has been ramping up production. They insist the policy will help close the price gap between locally refined and imported products while generating an estimated ₦4.8 trillion annually for reinvestment in energy infrastructure.

However, critics warn that the timing could worsen inflation and deepen economic hardship, especially after the removal of fuel subsidies earlier this year. Fuel marketers and transport operators fear that the higher import costs will trickle down to consumers through increased pump prices and transport fares.

Authorities have promised a 30-day transition period to allow importers to adjust, assuring Nigerians that market monitoring will prevent sudden price spikes.

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