LNigerians may soon face another round of fuel price hikes as President Bola Ahmed Tinubu has given the green light for a 15 per cent ad valorem import duty on Automotive Gas Oil (diesel) and Premium Motor Spirit (PMS), commonly known as petrol.
The approval, contained in a presidential letter dated October 21, 2025, was conveyed by the President’s Private Secretary, Damilotun Aderemi, to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
According to reports, the decision followed a request from the FIRS to apply the 15 per cent duty on the cost, insurance, and freight (CIF) value of imported fuel, with the aim of aligning import expenses with domestic realities.
However, the new policy is expected to push fuel prices higher across the country. Industry estimates suggest petrol could rise to between ₦950 and ₦960 per litre in Abuja, while diesel may sell for between ₦1,120 and ₦1,140 — marking an increase of nearly ₦100 per litre.
When fully implemented, petrol prices are projected to exceed ₦1,000 per litre at most filling stations that depend on imported products.
Data from the NMDPRA reveals that Nigeria’s PMS supply between August 2024 and October 2025 stood at 21.68 billion litres. Of this, only 6.67 billion litres — about 31 per cent — came from local sources such as the Dangote Refinery, while a larger 69 per cent (15.01 billion litres) were imported.
This heavy reliance on imports means most Nigerians remain exposed to global price fluctuations and import-related costs.
As of October 21, 2025, the landing cost of imported petrol was ₦839.97 per litre — slightly below Dangote Refinery’s ex-depot price of ₦877 per litre, according to figures from the Major Energy Marketers Association of Nigeria (MEMAN).
Analysts believe the newly approved import duty could give Dangote Refinery an edge over imported fuel, potentially reshaping the market dynamics.
The development comes amid recent fuel price increases across the country, triggered by adjustments in ex-depot rates by Dangote Refinery and depot owners.
It also follows a fresh directive by the FIRS instructing banks and financial institutions to begin deducting a 10 per cent withholding tax on interest earned from short-term securities — another fiscal move seen as part of the government’s broader revenue drive.