By TheCable
President Bola Ahmed Tinubu has approved the imposition of a 15 percent ad-valorem import duty on Premium Motor Spirit (PMS), commonly known as petrol, and Automotive Gas Oil (AGO), also known as diesel — a policy shift that is expected to significantly impact fuel prices nationwide.
In a confidential letter dated October 21, 2025, and obtained by TheCable, Damilotun Aderemi, the President’s Private Secretary, conveyed the directive to both the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
According to the document, the approval followed a formal request from the FIRS seeking to apply a 15% import duty on the cost, insurance, and freight (CIF) value of imported petrol and diesel — a move it said was necessary to align import costs with “current domestic realities.”
The new policy is projected to raise the pump price of petrol by an estimated ₦99.72 per litre, further heightening public concern over the rising cost of living.
This development comes amid growing economic hardship, inflationary pressures, and widespread criticism of the government’s post-subsidy management of the petroleum sector. Analysts warn that the fresh tariff could worsen transportation costs, food prices, and inflation, which already sits at multi-decade highs.
Neither the Presidency nor the FIRS has issued an official statement on when the new import duty will take effect, but sources say implementation could begin as early as November 2025, pending coordination with the relevant regulatory agencies.
Economic experts have described the decision as a “double-edged sword”, noting that while it may boost government revenue and align with fiscal reforms, it risks triggering another wave of public backlash — especially as Nigerians continue to grapple with the impact of fuel deregulation and the removal of subsidies.
As the nation braces for the likely spike in fuel prices, all eyes are now on the NMDPRA and the FIRS to issue further clarification on implementation timelines and possible mitigation measures.
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