The price of petrol are expected to surge above N1,000 per liter after President Bola Tinubu approved a 15% import tariff on petrol and diesel for a period of 30 days expected to end on Friday November 21, marketers have warned. The tariff, aimed at protecting local refineries, is expected to raise petrol prices by around N99.72 per liter. Before the tariff, petrol prices were around N874.50 per liter for 95-octane gasoline, with prices varying across locations.
With the new tariff, prices are projected to reach N964.72 per liter in Lagos, and other regions.
The 15% tariff is expected to boost local refining capacity and government revenue but may lead to higher fuel prices and potential scarcity.
The move aims to support domestic refineries like the Dangote Refinery, which has faced competition from cheaper imports. The tariff’s effect on fuel prices may be felt across the economy, with potential implications for inflation and transportation costs.
“The 15 per cent tariff on imported fuel has its own implications. Maybe the price will go up, and equally, it will discourage importers from bringing in fuel if it becomes too costly. But it has both negative and positive effects on the sector.
I see that the government is trying to protect local refiners, but it will have its own implications because people will see it as a way of monopolising the industry for certain people. At the same time, the government aims to protect the local refiners.
If the local refiners fail, it will have its own implications. It may lead to scarcity, and people will not have an alternative. So, it has both positive and negative effects. That’s the way I see it,” Hammed Fashola, National Vice President of the Independent Petroleum Marketers Association of Nigeria said.
The 15% import tariff has resulted to complaints by some people in the Petroleum sectors. One of the depot operator had to voice out As it is, the price of fuel may go above N1,000 per litre. I don’t know why the government will be adding more to people’s suffering,” he said.
