FG Urged to Postpone New Petrol Tariff Until Local Refineries Reach 80% Capacity

The Peering Advocacy and Advancement Centre in Africa (PAACA) has called on the Federal Government to delay the planned 15 per cent import tariff on petrol and diesel, warning that it could sharply increase pump prices and worsen economic hardship.

At a press briefing in Abuja, PAACA Executive Director Ezenwa Nwagwu said the policy should only be implemented once domestic refining can meet at least 80 per cent of national fuel demand. He noted that current local refining is insufficient, and restricting imports prematurely could lead to scarcity and price hikes.

“Imported petrol currently lands at about N802 per litre, while locally refined products cost N929.72 per litre. Imposing a 15 per cent tariff now would push prices up by N140 to N165 per litre nationwide,” Nwagwu said.

He added that the Dangote Refinery, which the policy seems to favour, currently supplies roughly 40 per cent of national demand and still relies on imports for blending, making a restriction on other importers premature.

Nwagwu cautioned that depending on a single supplier could create monopoly power, harming independent depot owners and marketers who have invested in infrastructure. He urged the government to suspend the tariff until local refining reaches a more sustainable capacity.

PAACA also called for greater transparency in refinery operations, recommending monthly disclosures of output, import volumes, and landing costs by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The organisation further proposed establishing a downstream competition framework and an energy market monitoring unit under the Federal Competition and Consumer Protection Commission to prevent cartelisation.

“True energy security requires multiple suppliers. Government policies must prioritise citizens’ welfare, not the protection of a single player,” Nwagwu emphasized.

The advocacy group warned that failure to act responsibly could exacerbate the cost of transportation, food, and other essential goods across the country.