ABUJA, Nigeria (FN) — The price of petrol in Nigeria could surpass N1,000 per litre following President Bola Tinubu’s approval of a 15 percent ad valorem import tariff on fuel, petroleum marketers warned Thursday.
The tariff, set to take effect after a 30-day transition period ending November 21, is part of the government’s plan to shield domestic refiners from cheaper foreign imports. Officials say the policy aims to encourage investment in local refining and reduce reliance on imported fuel.
Depot operators and fuel marketers, however, cautioned that the measure could drive up pump prices and deepen economic hardship for consumers. Petrol currently sells for around N920 per litre in many parts of the country, already a steep increase from earlier this year.
“As it stands, fuel could go above N1,000 per litre,” said one depot operator who requested anonymity. “This will only worsen the burden on ordinary Nigerians.”
Another operator claimed that some importers are coordinating with major players like Dangote Refinery, contributing to uniform price hikes across the sector. “The last increase was simultaneous. Everyone adjusted their prices at once,” the source said.
Industry stakeholders argue that without a clear regulatory framework to manage competition and stabilize supply, the new tariff could trigger further inflation and fuel scarcity. They also expressed concern over potential monopolistic practices if smaller importers are priced out of the market.
Hammed Fashola, National Vice-President of the Independent Petroleum Marketers Association of Nigeria, acknowledged the policy’s dual impact. “It may discourage importation and promote local refining, but it could also lead to higher prices and limited supply,” he said.
Fashola warned that if domestic refineries fail to meet demand, the country could face a fuel crisis. “There’s a risk of scarcity if local producers cannot deliver. Consumers will have no fallback option,” he added.
The government has not issued a formal response to the concerns raised by marketers, but officials maintain that the tariff is necessary to protect long-term energy security and industrial growth.
As the November deadline approaches, Nigerians brace for potential price hikes amid broader economic pressures, including inflation, currency volatility, and rising transportation costs.
