Nigeria’s petroleum entrepreneurs have warned that the pump value of Premium Motor Spirit (PMS), popularly referred to as petrol may climb previous the ₦1,000‑per‑litre mark after President Bola Tinubu authorised a 15 p.c advert‑valorem import tariff, on gas imports.
The brand new coverage, slated to grow to be lively after a thirty‑day transition that concludes on November twenty first 2025 suits into the federal government’s bigger scheme to fortify home refineries and choke off the surge of cheaper imports that would erode the house‑grown refining sector.
Nevertheless, oil entrepreneurs and depot operators say the coverage may additional pressure shoppers already wrestling with hovering gas prices and inflation.
Entrepreneurs Elevate Alarm Over Imminent Worth Hike
Talking to journalists on Thursday, a number of depot operators expressed concern that the extra tariff may set off a brand new spherical of value will increase.
“Because it stands, the worth of gas could go above ₦1,000 per litre. I don’t perceive why the federal government is including extra to the struggling of extraordinary Nigerians,” one depot operator mentioned.
One other operator alleged that some importers have been already aligning with main native refiners, akin to Dangote Petroleum Refinery, to keep up excessive value ranges.
“The final value enhance was coordinated; all gamers raised their costs on the identical time. With no clear market construction, this new tariff could worsen the scenario,” the operator added.
IPMAN Cautions Towards Monopoly, Predicts Blended Consequence
Hammed Fashola, Nationwide Vice President of the Unbiased Petroleum Entrepreneurs Affiliation of Nigeria (IPMAN) noticed that the coverage carries each advantages and disadvantages.
“The 15 per cent tariff will discourage importation and encourage native refining, which is sweet in precept. But when native refineries can not meet nationwide demand, we could expertise shortage and better costs,” he mentioned.
“Individuals will see it as a transfer to favour sure gamers, particularly Dangote. The federal government should guarantee equity and wholesome competitors,” he added.
He nonetheless contended that the coverage doesn’t breach the Petroleum Business Act (PIA) and appealed to the Nigerian Nationwide Petroleum Firm Restricted (NNPCL) to speed up the revival of the Port Harcourt, Warri and Kaduna refineries.
Retailers Describe Tariff as “Check of Coverage”
Billy Gillis‑Harry, the Nationwide President of the Petroleum Merchandise Retail Outlet House owners Affiliation of Nigeria (PETROAN) mentioned the tariff is a “coverage take a look at” that would deliver ‘combined’ outcomes.
“This isn’t fully new, however it is going to take time to evaluate its affect. Our precedence is guaranteeing availability and affordability. Low cost gas with out sustainability will solely result in shortage,” he mentioned.
Gillis-Harry added that relying closely on a single provider like Dangote is unsustainable.
“Dangote alone can not provide the whole nation. There should be a wholesome mixture of native production and importation to maintain the market balanced,” he cautioned.
This improvement has provoked a way of tension amongst motorists and households, all through the nation as issues mount that the approaching tariff may irritate residing situations already stretched skinny by inflated transport and meals expenditures.
For the time being petrol prices between ₦880 and ₦920, per litre throughout a number of states and within the nation’s main cities, lengthy strains are already forming as worries develop over any additional value hikes.