Civil Society Group Wants Implementation Of 15% Fuel Tariff Delayed

The Peering Advocacy and Advancement Centre in Africa (PAACA) has urged the federal government to delay the planned introduction of a 15 per cent import tariff on petrol and diesel, warning that the move could trigger a sharp rise in pump prices and worsen the current economic hardship.

The organisation said the policy should not be implemented until domestic refining capacity reaches at least 80 per cent of national demand.

Speaking at a press conference in Abuja yesterday, the executive director of PAACA, Ezenwa Nwagwu, stated that data indicated that domestic refining is not yet sufficient to meet national demand and that forcing importers out of the market would lead to scarcity and higher prices.

According to him, imported petrol currently costs about N802 per litre, while locally refined products cost N929.72 per litre.

He said adding a 15 per cent tariff would further increase costs, pushing the pump price up by between N140 and N165 per litre across the country. He noted that the Dangote Refinery, which the policy appears set to favour, currently supplies about 40 per cent of national demand and still imports components for its own blending, making the case for import restriction premature.

Nwagwu also warned that depending on a single major supplier could give that company control over pricing and distribution, while sidelining independent depot owners and marketers who have invested heavily in infrastructure. He urged the government to suspend the proposed tariff until domestic refining capacity reaches at least 80 per cent of national needs.

He said, “Our call today is straightforward: the Federal Government must suspend or reject the proposed tariff, expose and correct its economic, social, and ethical flaws, and educate the public on the dangers of monopolies in vital sectors like fuel, cement, and food. Above all, it must promote transparency and fair competition to protect consumers, workers, and small businesses across the nation.

“The facts are clear: the Dangote Refinery currently meets only about 40 per cent of national fuel demand. Restricting imports now will not stabilise supply; it will create scarcity. Imported petrol today costs roughly N802 per litre, while the locally refined product from Dangote costs N929.72 per litre.

“Adding a 15 per cent tariff will only make things worse, increasing pump prices by between N140 and N165 per litre and driving up the cost of transportation, food, and essential goods.”

Nwagwu called for transparency in refinery supply agreements and the monthly publication of refinery output, import volumes, and landing costs by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The organisation further recommended establishing a downstream competition framework under the Petroleum Industry Act and an energy market monitoring unit under the Federal Competition and Consumer Protection Commission to prevent cartel formation.