Tinubu approves 15% import duty on petrol, diesel
President Bola Tinubu has approved a 15% ad-valorem import duty on petrol and diesel imports, aiming to protect domestic refineries and promote stability in Nigeria's downstream oil sector. The directive, dated October 21, 2025, instructs the Federal Inland Revenue Service and the Nigerian Midstream and Downstream Petroleum Regulatory Authority to enforce the tariff immediately.The move is part of a new "market-responsive import tariff framework" designed to support local production and energy security. According to the government, the current disparity between locally refined fuel prices and import parity benchmarks has fueled market volatility.
The 15% duty is expected to increase the landing cost of petrol by approximately ₦99.72 per liter, nudging imported costs toward local cost-recovery levels without choking supply or inflating consumer prices excessively. Even with the adjustment, estimated pump prices in Lagos would remain significantly below regional averages.
The decision aligns with Nigeria's efforts to reduce reliance on imported petroleum products and boost domestic refining output, with local refineries starting to produce fuel. However, imported petrol still meets around 67% of Nigeria's total consumption.
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