PAACA Warns Against 15% Fuel Import Tariff, Calls for Delay Until Domestic Refining Improves

The Peering Advocacy and Advancement Centre in Africa (PAACA) has urged the Federal Government to postpone the planned 15 per cent import tariff on petrol and diesel, cautioning that its immediate implementation could drive pump prices higher and deepen the current economic challenges.

At a press briefing in Abuja, PAACA’s Executive Director, Ezenwa Nwagwu, argued that the country’s domestic refining capacity is still insufficient to meet national demand, and imposing the tariff now could create fuel scarcity and further inflate costs.

Data presented by Nwagwu show that imported petrol currently lands at about N802 per litre, while locally refined fuel costs N929.72 per litre. Adding a 15 per cent tariff, he warned, could push pump prices up by N140 to N165 per litre nationwide.

He noted that the Dangote Refinery, which the policy seems intended to favour, currently meets only around 40 per cent of national fuel demand and still relies on imported components for blending. “Restricting imports now will not stabilize supply; it will create scarcity,” Nwagwu said.

The PAACA chief also cautioned that depending on a single major supplier could allow that company to control pricing and distribution, marginalizing independent depot owners and marketers who have invested heavily in infrastructure. He called on the government to delay the proposed tariff until domestic refining reaches at least 80 per cent of national demand.

Nwagwu stressed the importance of transparency and competition, urging authorities to publish monthly refinery output, import volumes, and landing costs through the Nigerian Midstream and Downstream Petroleum Regulatory Authority. He also recommended creating a downstream competition framework under the Petroleum Industry Act and an energy market monitoring unit under the Federal Competition and Consumer Protection Commission to prevent monopolistic practices.

“True energy security requires multiple suppliers, not the protection of a single player,” Nwagwu said, emphasizing that government policies must prioritize the welfare of citizens and safeguard affordability in fuel, transportation, and essential goods.