President Bola Tinubu has approved a 15% ad-valorem import duty on diesel and premium motor spirit (PMS), also known as petrol, in a move aimed at aligning import costs with domestic realities and strengthening the government’s non-oil revenue drive.
The decision, conveyed to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) by the President’s private secretary, Damilotun Aderemi, is expected to increase the price of a liter of petrol by approximately ₦99.72.
According to the letter, the implementation of the import duty will prioritize local production before the issuance of import licenses and ensure a smooth rollout without market disruption after a 30-day transition period.
The FIRS chairman, Zacch Adedeji, explained that the duty is not revenue-driven but corrective, intended to protect local refineries and stabilize the downstream petroleum market.
The new policy will empower the NMDPRA to issue regulations imposing public service obligations on licensees, with payments made into a designated Federal Government revenue account verified by the NMDPRA before discharge clearance.
Despite concerns over potential price hikes, the government believes the policy will help reduce revenue leakages and ensure better accountability in the fuel importation process.
