There is apprehension of possible hike in prices of fuel and diesel as President Bola Tinubu has approved a 15 per cent ad-valorem import duty on diesel and premium motor spirit (PMS), commonly known as fuel. The implementation of the new import duty is projected to increase the pump price of petrol by approximately N99.72 per litre.
The Private Secretary to the President, Damilotun Aderemi, disclosed the approval in a letter dated October 21, 2025, through which he conveyed the directive to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The letter stated that the decision followed a request by the FIRS seeking the President’s consent to apply a 15 per cent duty on the cost, insurance, and freight (CIF) value of imported petrol and diesel to align import costs with domestic realities.
Adedeji, in his memo to the President, explained that the measure was part of ongoing reforms to boost local refining, ensure price stability, and strengthen the naira-based oil economy in line with the administration’s Renewed Hope Agenda for energy security and fiscal sustainability. The policy comes as Nigeria intensifies efforts to reduce dependence on imported petroleum products and ramp up domestic refining.
The 650,000 barrels-per-day Dangote Refinery in Lagos has commenced diesel and aviation fuel production, while modular refineries in Edo, Rivers and Imo states have started small-scale petrol refining. However, despite these gains, petrol imports still account for up to 67 per cent of national demand. Currently in Lagos fuel pump prices range between N910 and about N925 while the pump prices in other states of the federation are higher.
Meanwhile, oil prices fell yesterday as investors assessed a potential trade truce between the United States and China, as President Donald Trump lowered tariffs on China after a meeting with President Xi Jinping in South Korea. According to Reuters, Brent crude futures fell 73 cents or 1.1% to trade at $64.19 a barrel while US West Texas Intermediate crude futures dropped by 68 cents or 1.1% to $59.80.
