President Bola Tinubu has approved a 15 per cent ad valorem import duty on petrol and diesel, a move that could trigger a fresh increase in fuel prices across the country.
According to The Guardian, this was announced in a letter dated October 21, 2025, where the private secretary to the president, Damilotun Aderemi, conveyed Tinubu’s approval to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Tinubu gave his approval, following a request by the FIRS to apply the 15 per cent duty on the cost, insurance and freight (CIF) to align import costs to domestic realities.
With the approval, the implementation of the import duty will increase the current cost of a litre of petrol and diesel between N950 and N960 per litre and N1,120 and N1,140 (diesel) in Abuja by an estimated N99.72 kobo.
This would push petrol prices to over N1,000 per litre for the majority of filling stations which rely on importers when implemented.
Recent data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority show that total PMS supply for August 2024 and October 2025 stood at 21.68 billion litres. The report indicated that only 6.67 billion litres of petrol, or 31 per cent, are sourced from local refineries (Dangote Refinery), while 15.01 billion litres, which represent 69 per cent, are imported.
This means that the majority of Nigerians still rely heavily on imported petrol.
As of October 21, 2025, the landing cost of imported fuel was N839.97 per litre, lower than Dangote Refinery’s ex-depot price of N877 per litre, according to data from the Major Energy Marketers Association of Nigeria.
The import duty tax on petrol and diesel puts Dangote Refinery’s petrol in an advantageous position.
Fuel prices have surged nationwide in the past two weeks following increases in ex-depot prices by Dangote Refinery and other depot owners.
The approval of the import duty tax comes amid a recent directive by the FIRS instructing banks, stockbrokers, and other financial institutions to deduct a 10 per cent withholding tax on interest earned from short-term securities.
