Marketers welcome Tinubu’s shift of 15% fuel import duty to 2026, say move averts fresh price shock

Oil marketers have welcomed President Bola Tinubu’s decision to postpone the implementation of the proposed 15 per cent import duty on petrol and diesel to the first quarter of 2026, describing the move as a necessary relief for consumers and a stabilising step for the downstream market.

The proposed duty – which was originally approved on October 21, 2025 – sparked widespread concern across the oil and gas sector over fears that it would trigger higher pump prices and worsen inflation. Although the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced its suspension earlier on Thursday, new documents show that the President actually approved a deferment into early 2026, pending another review.

The shift was based on a memo submitted by the Executive Chairman of the Federal Inland Revenue Service, Dr Zacch Adedeji, who advised that the market was not ready for the tariff. His letter stressed the need to avoid supply disruptions, ensure technical readiness among agencies, and give time for emerging local refineries to ramp up production.

“Government listened to reason”

Reacting to the development, the President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, told Punch that the decision shows the government is responsive and willing to adjust policies in line with public interest.

“Implementing 15 per cent now would have been too harsh,” Gillis-Harry said. “We commend the President for listening. The economy is fragile, and any additional cost on imports would have affected Nigerians directly.”

He added that while import duties are part of normal market reforms, the timing was wrong, and the suspension allows for a more coordinated approach.

Similarly, the Independent Petroleum Marketers Association of Nigeria (IPMAN) described the suspension as a major relief for consumers.

“We are happy about it,” IPMAN’s Publicity Secretary, Chinedu Ukadike, said. “If the duty had taken effect, it would have fuelled inflation and distorted the market. This is a welcome decision.”

Experts say duty was ill-timed

Oil and gas expert and CEO of Petroleumprice.ng, Olatide Jeremiah, according to Punch, called the initial tariff “outrageous”, arguing that Nigeria still lacks sufficient refining capacity to absorb such a cost increase.

“The tariff would have discouraged fuel imports at a time local refining cannot meet demand,” he said. “Even the world’s largest economies still import fuel. Imposing a 15 per cent duty now would have driven pump prices up and created unnecessary economic pressure.”

He added that the deferment gives refineries like Dangote and modular plants time to stabilise operations before the policy is revisited.