President Bola Tinubu has approved a new 15 per cent ad valorem import duty on petrol and diesel, a move set to significantly increase pump prices and push petrol to over N1,000 per litre across many filling stations.
A fresh wave of price increases for Premium Motor Spirit (PMS), or petrol, and Automotive Gas Oil (diesel) is imminent following President Bola Tinubu’s approval of a 15 per cent ad valorem import duty on both products. The directive, conveyed in an October 21, 2025, letter, applies the duty on the cost, insurance, and freight (CIF) of the imported fuels, aligning with a request from the Federal Inland Revenue Service (FIRS).
This decision is projected to add an estimated \text{N}99.72 kobo to the current cost of a litre of petrol and diesel in Abuja, potentially pushing petrol prices above the N1,000 mark for stations relying on importers. With imported petrol accounting for 69 per cent of the nation’s supply, the hike will heavily impact most Nigerian consumers. The new import duty also puts locally refined fuel, such as that from Dangote Refinery, in a more competitive position.
“A fresh fuel price hike looms as President Bola Tinubu has approved a 15 per cent ad valorem import duty on automotive gas oil (diesel) and premium motor spirit (PMS), also known as petrol.”