15% fuel import tariff will trigger scarcity, price hike, CSO warns FG

The Peering Advocacy and Advancement Centre in Africa (PAACA) has urged the Federal Government to reconsider its proposed 15 percent import tariff on petrol and diesel.

The organization warns that this policy could lead to fuel shortages, increase pump prices, and undermine the very deregulation that the government claims to be promoting.

During a press conference in Abuja on Monday, PAACA Executive Director Ezenwa Nwagwu expressed concerns that the tariff would eliminate competition, raise fuel prices, and concentrate monopoly control in the hands of a single private refinery. He argued that this move contradicts the intended goals of deregulation.

He said the organisation convened under the theme “Protect the People, Not the Monopoly” to draw attention to a policy he described as dangerous for both the economy and vulnerable citizens.

According to him, the government’s argument that the tariff would protect local refining capacity does not align with current realities, noting that the Dangote Refinery meets only about 40 percent of national fuel demand. “Restricting imports now will not stabilize supply but will create scarcity,” he said. “Once competition disappears, prices are dictated rather than discovered, leaving Nigerians with no choice and no relief.”

Nwagwu said imported petrol currently lands at roughly ₦802 per litre, while locally refined petrol from Dangote lands at ₦929.72 per litre, warning that a 15 percent tariff would push pump prices up by between ₦140 and ₦165 per litre. He added that such an increase would worsen inflation, raise transportation costs and heighten the pressure already felt by households struggling with subsidy removal, currency depreciation and job losses.

He argued that the government’s responsibility is to ensure fairness and transparency, not to “pick winners and losers,” stressing that Nigeria risks sliding into a familiar pattern where monopolies dominate essential commodities.

“History has already taught us painful lessons. From cement to sugar to flour, once monopolies take root in Nigeria, prices rise permanently and alternatives vanish,” he said. “Patriotism cannot be built on exploitation. We cannot allow corporate dominance to be disguised as national pride while citizens pay the price for it every day at the fuel pump.”

PAACA therefore urged the government to suspend the proposed tariff until domestic refining capacity reaches at least 80 percent of national demand, and called for public disclosure of refinery supply agreements with marketers to ensure fairness in the downstream sector.

Nwagwu added that the Nigerian Midstream and Downstream Petroleum Regulatory Authority should publish monthly data on refinery output, import volumes and landed costs to improve transparency.

He also recommended the establishment of a competition framework under the Petroleum Industry Act to discourage monopolistic pricing, and proposed an Energy Market Monitoring Unit under the Federal Competition and Consumer Protection Commission to track market concentration and anti-competitive behaviour.

READ MORE FROM: NIGERIAN TRIBUNE