In a significant policy shift aimed at strengthening Nigeria’s downstream petroleum sector, President Bola Ahmed Tinubu has approved the imposition of a 15% ad-valorem import duty on premium motor spirit (PMS), commonly known as petrol, and automotive gas oil (AGO), also known as diesel.
The directive, dated October 21, 2025, was formally communicated to the Federal Inland Revenue Service (FIRS), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the Nigeria Customs Service. The new tariff will be applied to the cost, insurance, and freight (CIF) value of imported fuel products.
According to government sources, the decision follows a proposal from the Ministry of Finance and FIRS to align Nigeria’s fuel import pricing with domestic economic realities and to protect emerging local refineries. The move is expected to stabilize the downstream petroleum market and encourage investment in domestic production.
“This policy is a strategic step toward achieving energy independence and ensuring a more resilient petroleum supply chain,” said a senior official at the Ministry of Finance. “It reflects the administration’s commitment to fostering local capacity and reducing overreliance on imported fuel.”
Industry analysts project that the new import duty could lead to an increase in pump prices, with estimates suggesting a rise of up to ₦150 per litre in some regions. The Nigerian National Petroleum Company Limited (NNPCL) has acknowledged the potential impact and is reportedly reviewing its pricing models to mitigate consumer burden.