Tinubu approves 15% import duty on petrol, diesel

President Bola Tinubu has approved a 15 per cent import duty on petrol and diesel.

According to a letter dated October 21, 2025, and addressed to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the president directed the immediate implementation of the tariff under what he described as a “market-responsive import tariff framework.”

The directive, contained in a letter signed by the president’s Private Secretary, Damilotun Aderemi, followed a proposal from the FIRS Executive Chairman, Zacch Adedeji.

The proposal sought to apply a 15 per cent duty on the cost, insurance, and freight (CIF) value of imported petrol and diesel to better align import costs with domestic market realities.

The move is expected to raise the pump price of petrol and diesel by as much as N150 per litre in some parts of the country.

Adedeji explained in his memo that the new tariff structure forms part of ongoing fiscal and energy reforms aimed at encouraging local refining, stabilising prices, and supporting a naira-based oil economy in line with the Tinubu administration’s Renewed Hope Agenda.

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“The core objective of this initiative is to operationalise crude transactions in local currency, strengthen local refining capacity, and ensure a stable and affordable supply of petroleum products across Nigeria,” Adedeji stated.

He noted that despite progress in local refining and diesel sufficiency, the market continues to face price instability due to disparities between local refiners and importers.

Projections in the approved document indicate that the 15 per cent duty could raise the landing cost of petrol by about N99.72 per litre.

The letter read: “At current CIF levels, this represents an increment of approximately N99.72 per litre.

“This adjustment moves imported fuel costs closer to local cost-recovery levels without significantly distorting market prices or disrupting supply.”

The document added that even with the new tariff, estimated pump prices in Lagos would average around N964.72 per litre ($0.62), which remains lower than regional prices in Senegal ($1.76), Cote d’Ivoire ($1.52), and Ghana ($1.37).

The Star