Get Ready to Dig Deeper: New Petrol Tariff to Cost Nigerians N1tn Yearly

By: Abudu Olalekan

Your petrol bill is about to get a whole lot bigger. And we’re not talking about a small change. The Federal Government just approved a new 15% import tariff on petrol. And what does that mean for you? An extra N1 trillion or so coming out of our pockets every single year. A price analysis by Reportersroom shows the staggering reality.

Let’s break it down. Nigeria imports a lot of petrol. We’re talking about an average of nearly 27 million litres every single day. The government’s own numbers put the new tariff at about N100 for every litre. Do the math. That’s almost N2.7 billion in new taxes daily. Over a year, it balloons to nearly N974 billion. That’s a massive chunk of change, and you know who will pay for it at the pump. We will.

So, why are they doing this? President Bola Tinubu’s administration says it’s all part of a bigger plan. The official word is that this isn’t just about making money. It’s about protecting our own. The goal is to help local refineries, like the Dangote Refinery and the revived NNPC plants, actually compete. The idea is to make importing fuel a little less attractive, so companies buy Nigerian-made petrol instead.

Zacch Adedeji, the boss of the Federal Inland Revenue Service, pitched the idea. He said it’s a “corrective” policy. He argued that cheap, duty-free imports were killing our local industry before it even had a chance to stand up. This new tariff, he says, levels the playing field. It’s a tough love approach to build a stronger, self-sufficient Nigeria. At least, that’s the story.

But not everyone is buying it. In fact, the dissent is getting loud.

Enter the independent petroleum marketers. Chinedu Ukadike, a spokesperson for IPMAN, basically said the government is putting the cart before the horse. “You can’t say you’ve deregulated the market and then start favouring one group over another,” he argued. His point is simple: let the market decide. If local petrol is cheaper, marketers will buy it. There’s no need for a new tax to force their hand. He warned this will just drive up inflation, especially with Christmas just around the corner when everyone needs to travel.

Then there’s Jeremiah Olatide, an oil market analyst. He called the policy a “double-edged sword.” Sure, it means more cash for the government. But the timing, he says, is just wrong. “Nigerians are still struggling,” he told Reportersroom. “People are just getting used to paying N900 for a litre of petrol after the subsidy was removed. Adding another cost now will hit them hard.” He fears it’s another burden that will crush the hope of ever seeing fuel prices drop.

Of course, it’s not all doom and gloom. Some are actually cheering the move. The Centre for the Promotion of Private Enterprise (CPPE) sees it as a brave and necessary step. They call it “strategic protectionism.” Their argument? It worked for the cement industry. It worked for flour. By protecting local producers for a short time, you help them grow strong enough to compete globally. They believe this is the only way to build a real industrial base in Nigeria.

So where does that leave the average Nigerian? Stuck in the middle. On one side, a government promising long-term industrial strength. On the other, the immediate, painful reality of higher fuel costs. The policy is set to kick in after a 30-day transition period. The debate will rage on. But at the pump, the numbers don’t lie. And they’re about to go up.