The Business NG - October 31, 2025

In this issue

News Focus | BusinessNG
Petrol Duty Threatens New Price Surge

A fresh wave of fuel price hikes may soon hit consumers following President Bola Tinubu’s approval of a 15 per cent ad valorem import duty on petrol and diesel. The directive, conveyed in an October 21, 2025 letter signed by his private secretary, Damilotun Aderemi, authorises the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to implement the new levy.

The move, aimed at aligning petroleum pricing with domestic market realities, is expected to worsen inflationary pressures already eroding household incomes. Industry analysts warn that petrol prices could climb above ₦1,000 per litre nationwide, while diesel may sell for over ₦1,120 per litre, depending on market dynamics and logistics costs.

Despite hopes of reduced import dependency, NMDPRA data show that between August 2024 and October 2025, local refineries—led by Dangote Refinery—supplied only 31 per cent of national demand, leaving 69 per cent met through imports. With global crude prices still high and the naira under pressure, the new duty could trigger broader cost-push inflation, heightening public frustration and testing the government’s economic management credibility.