The Federal Government has approved a 15% tariff on imported petrol. The policy is intended to support local refineries and reduce dependence on imported fuel. The tariff will take effect after a 30-day transition period ending in November 2025.
Petrol marketers warn that this move could push the petrol price in Nigeria above N1,000 per litre. This is because fuel already sells around N900 to N920 in several parts of the country. They also fear that the policy may help large refineries, such as Dangote, gain more control of the market.
The government says the tariff will help protect domestic refining and stabilise the long-term fuel market. Officials also claim it will reduce pressure on the naira by lowering foreign exchange demand.
Analysts, however, caution that if local refineries fail to meet national demand, the result could be higher pump prices and possible scarcity. The success of the policy will depend on how quickly domestic fuel production increases.
