President Bola Ahmed Tinubu Approves 15% Import Duty on Diesel and Petrol Imports

President Bola Ahmed Tinubu has approved a 15% ad-valorem import duty on crude oil products—specifically diesel and premium motor spirit (PMS, commonly called petrol).

Key Details

• The approval was communicated in a letter dated October 21, 2025, addressed to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The duty is based on the cost, insurance and freight (CIF) value of imported products.
• Implementation will likely increase the pump price of petrol by approximately ₦99.72 per litre.
• The measure is part of the government’s efforts to align import costs with domestic realities and reduce dependency on imported fuel.

Implications for the Energy Sector

• Refinery and Downstream Boost: Higher import duties may strengthen the push for domestic refining and local fuel production to offset rising import costs.

• Consumer Impact: The rise in pump prices could increase operating costs for households, businesses reliant on diesel, and transport companies.

• Policy Signal: The move underscores the government’s shift toward incentivising local capacity, curbing import reliance, and consolidating revenue from fuel imports.