President Bola Tinubu has approved a 15% import duty on petrol (PMS) and diesel (automotive gas oil).
The approval was conveyed in a letter dated October 21, 2025, to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The duty was recommended by FIRS to adjust import costs in line with domestic market realities.
If implemented, this move is expected to increase petrol and diesel prices by about N99.72 per litre, pushing most petrol prices above N1,000 per litre.
Nigeria still imports petrol heavily
Recent NMDPRA data shows that only 31% of petrol supply comes from local refineries, including Dangote Refinery, while 69% is imported.
This means most Nigerians rely heavily on imported fuel, which will now carry the added import duty cost.
As of October 21, 2025, the land cost of imported fuel was N839.97 per litre, lower than Dangote Refinery’s ex-depot price of N877 per litre.
The import duty makes locally refined petrol more competitive compared to imported fuel.
Fuel prices have already risen nationwide in the past two weeks due to higher ex-depot prices from Dangote Refinery and other depot owners.
The new duty comes at a time when FIRS also directed banks and financial institutions to deduct a 10% withholding tax on interest earned from short-term securities, adding further financial pressure.
