The Major Energies Marketers Association of Nigeria (MEMAN) has cautioned that the recently introduced 15% import tariff on petroleum products could effectively serve as a ban on fuel importation.

President Bola Tinubu, a few weeks ago, approved a 15% import duty on petrol and Automotive Gas Oil and diesel, following a request by the Federal Inland Revenue Service (FIRS).

MEMAN criticises 15% fuel import duty

Executive Secretary of MEMAN, Mr Clement Isong, explained that the new tariff would significantly raise pump prices of petrol and diesel, with potential retail prices ranging from N1,100 to N1,200 per litre.

According to Daily Trust, he emphasised that such increases would impose further economic hardships on Nigerians.

Isong made these remarks during a joint MEMAN–S&P Global Commodity Insights webinar titled “Fostering Competition and Innovation: Lessons from Deregulated Markets for Nigeria’s Energy Sector.”

The discussion focused on recent developments in the downstream petroleum sector, particularly the impact of the 15% tariff policy that has sparked widespread debate within the oil and gas industry.

According to Isong, the tariff rate is excessively high and counterproductive to Nigeria’s energy security. Based on current market data, he revealed that a 15% levy would add about N122.46 to the cost of PMS, raising the landed cost from N827.24 to N949.70 per litre.

This adjustment could push retail prices to approximately N998 per litre in Lagos and N1,028 per litre in other regions. Diesel prices, he noted, could also surge to between N1,164 and N1,194 per litre, depending on distribution margins.

He said:

“We think it’s a bit high. And we think it will have a significant impact on the pump prices. We have done some preliminary calculations. This would add N122 to the price of PMS as of today, this is our calculation."

Isong argued that while tariffs can protect domestic refineries, such a steep rate should have been a last resort, as it risks discouraging competition and driving inflation through higher transportation and logistics costs.

Call for revival of Nigeria’s refineries

The MEMAN executive secretary underscored the urgent need to rehabilitate Nigeria’s four state-owned refineries or engage credible technical partners to restore them to full operation.

He stressed that the Dangote Refinery and other modular refineries must operate alongside public refineries to ensure a competitive and stable fuel market.

He added that Nigeria’s ability to increase crude oil production will be crucial in supporting both existing and upcoming refineries, fostering self-sufficiency in fuel supply and reducing the nation’s dependence on imports.