From January 2026, petrol in Nigeria will cost more. A new five percent fuel surcharge means buyers could pay an extra N45 per litre if the price stays at N900.

The surcharge is part of the Nigeria Tax Administration Act, signed by President Bola Tinubu in June 2025. It targets fossil fuel products such as petrol, diesel, aviation fuel and kerosene. However, cooking gas, household kerosene, CNG and renewable energy are exempt.

The Federal Inland Revenue Service, soon to be renamed the Nigeria Revenue Service, will collect the surcharge. The exact start date will be set by Finance Minister Wale Edun through an official order.

Marketers say the levy will hit consumers directly. The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) warned that margins in the industry are already slim. The new tax, they argue, will only push fuel prices higher.

Many Nigerians online also criticised the move, calling it unfair at a time of rising inflation and weak incomes.

Government officials defend the policy. They say the money will be used to fund transport infrastructure, lower logistics costs, and reduce inflation in the long run.

The surcharge is part of broader tax reforms to boost non-oil revenue. Still, for citizens, the concern is simple: petrol will cost more in 2026.

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