There are indications that Nigerians will begin to pay more for Premium Motor Spirit (PMS), otherwise known as petrol, after President Bola Tinubu approved a 15 per cent tariff on imported fuels.
According to reports, the President stated that the introduction of a ‘measured import tariff’ on Premium Motor Spirit (PMS) and Diesel, was aimed at reinforcing national energy security, safeguarding local refining capacity, stabilising the downstream market, and ensuring a fair and competitive pricing environment aligned with the the President’s agenda
However, the document stated that the impact will not exceed N100 addition per litre. At the moment, the PMS pump price is slightly above N900 per litre, while diesel is over N1,000 per litre.
The document noted: “While domestic refining of PMS has begun to increase, and local sufficiency in diesel production has been achieved, price instability persists, partly due to misalignment between local refiners and marketers.”
The framework introduces a 15 per cent ad-valorem duty on PMS and diesel, calculated on the Cost, Insurance, and Freight (CIF) value. “At current CIF levels, this represents an increment of approximately N99.72 per litre,” the document stated.
Even with the adjustment, pump prices are projected to average N964.72 per litre, still below regional averages in Senegal ($1.76), Côte d’Ivoire ($1.52), and Ghana ($1.37).
The policy is backed by Sections 71 and 72 of the Petroleum Industry Act, which empower the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to impose public service obligations to ensure energy security and economic stability.
Although the document initially proposed a 30-day transition period, President Tinubu directed immediate implementation, writing: “Approved as prayed for implementation immediately.”
There are, however, increased concerns that with Nigeria still importing over 60 per cent of its refined products as the Dangote Refinery is not at optimum production, the move could increase costs and heighten pressure on consumers.
The levy payments will be made into a designated Federal Government of Nigeria (FGN) revenue account under the Nigeria Revenue Service (NRS), with verification by the NMDPRA before discharge clearance.
In addition, an end-to-end digital verification will be linked to NMDPRA discharge clearance, to ensure that no cargo is released without proof of payment, while Customs and NMDPRA will update import templates, supported by a public compliance notice to minimise speculation and rumour-driven volatility.