Fuel Prices Set to Rise as Tinubu Approves 15% Import Duty on Petrol and Diesel

President Bola Tinubu has approved a 15% ad-valorem import duty on premium motor spirit (petrol) and diesel, a policy expected to significantly impact fuel prices across Nigeria.

The decision, officially communicated to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in a letter dated October 21, 2025, was signed by the President’s Private Secretary, Damilotun Aderemi.

The approval followed a request from FIRS to apply the 15% duty on the cost, insurance, and freight (CIF) value of imported fuel, aimed at aligning importation costs with domestic market realities and bolstering government revenue.

Experts estimate that the new tariff could increase the retail price of petrol by about ₦99.72 per litre, potentially pushing the average cost closer to ₦1,000 per litre, depending on transportation and market factors.

Analysts warn that this development could worsen the cost of living, increase transportation fares, and affect small businesses already grappling with high inflation and a weakened naira.

Government officials, however, defend the move, saying it is part of the administration’s fiscal reforms to curb revenue leakages, reduce dependence on borrowing, and stabilise the economy amid growing subsidy-related pressures.

The FIRS and NMDPRA are expected to begin immediate implementation, with monitoring teams deployed to ensure compliance across import channels.