Nigerians are growing anxious as the depot price of Premium Motor Spirit (PMS), commonly known as petrol, has surged to N889 per litre, a significant increase from last week's N887 per litre. This trend is particularly concerning as it could escalate further, potentially reaching N1,000 per litre with an additional 15% tax imposed by the government. The highest price of N889 per litre was recorded by Matrix, while Aiteo offered the lowest price of N871 per litre. According to depot data obtained by Vanguard, other operators such as Dangote Petroleum Refinery, Eterna, AA Rano, and AYM Ashafa charged N877, N874, N871, and N885 per litre, respectively. The downstream operators have warned that the price of petrol will exceed N1,000 per litre once the government's recent 15% fuel tax comes into effect after a 30-day transition period, concluding on November 21, 2025. Dr. Billy Gillis-Harry, the National President of the Petroleum Retail Outlets Owners Association of Nigeria (PETROAN), expressed support for the government's initiative, emphasizing the need for a smooth implementation that doesn't disrupt businesses. He stated, 'This is a new measure, and the government's intentions are clear. Our association is committed to working with others to ensure its successful execution.' The tax on petrol and diesel is strategically designed to bolster national energy security, safeguard local refining capabilities, stabilize the downstream market, and foster a fair and competitive pricing environment. The federal government justifies the tax by highlighting the need to protect and enhance domestic refining, which has been under threat from massive importation. According to the government, 'Despite the growth in domestic PMS refining and local diesel production, price instability persists due to the misalignment between local refiners and marketers. Import parity remains the pricing benchmark but often falls below the cost recovery point of local producers, especially during currency and freight fluctuations. If left unchecked, these risks could severely impact our nascent refining sector at a critical recovery stage. The government's dual responsibility is to shield consumers and domestic producers from unfair pricing practices and collusion while ensuring a level playing field for domestic refiners to cover costs and attract ongoing investment. The proposed ad-valorem import duty of 1% (15%) on PMS and diesel, applied to the Cost, Insurance, and Freight (CIF) value at discharge, aligns with the updated technical proposal. This tariff is not revenue-driven but corrective, aiming to align import costs with domestic realities while maintaining affordability. Payments would be directed into a designated Federal Government of Nigeria (FGN) revenue account under the Nigeria Revenue Service (NRS), with verification by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) before discharge clearance. Implementation will commence after a transition window, allowing importers to adjust cargoes already in transit and ensuring a seamless rollout without market disruption. President Tinubu has already approved the introduction of a 15% ad-valorem import duty on PMS and diesel, assessed on the CIF value at discharge, with all payments directed into a designated FGN revenue account and verified by the NMDPRA before discharge clearance. He has directed the NMDPRA and the Nigeria Customs Service (NCS) to implement a 15% import duty on PMS and diesel, effective after a 30-day transition period from the official notification date. The President has also instructed the NMDPRA, the regulator, to issue appropriate regulations, prioritizing local production before issuing import licenses. Additionally, he has directed the periodic review of the tariff rate and its continued necessity, including provisions for scaling or sunset measures, as domestic PMS refining capacity expands, under the oversight of the Implementation Committee on Crude Oil Refined Products Sales in Naira.
