The Peering Advocacy and Advancement Centre in Africa (PAACA) has asked the Federal Government to delay the planned introduction of a 15 percent import tariff on petrol and diesel, warning that the move could trigger a sharp rise in pump prices and worsen the current economic hardship.
PAACA noted that the Dangote Refinery, which the policy appears set to protect and favour, currently supplied just 40 percent of national demand.
Speaking at a press conference in Abuja on Tuesday, Executive Director of PAACA, Ezenwa Nwagwu, said data shows that domestic refining is not yet sufficient to meet national demand, and forcing importers out of the market would lead to scarcity and higher prices.
Moreover, PAACA said the refinery still imported components for its own blending, making the case for import restriction premature.
The organisation said the policy should not be implemented until domestic refining capacity attained at least 80 percent of national demand.
According to him, imported petrol currently lands at about N802 per litre, while locally refined products land at N929.72 per litre.
He said adding a 15 percent tariff would further increase costs, pushing the pump price up by between N140 and N165 per litre across the country.
Nwagwu also warned that depending on one major supplier could give that company control over pricing and distribution, while sidelining independent depot owners and marketers who have invested heavily in infrastructure. He urged the government to suspend the proposed tariff until domestic refining capacity reaches at least 80 percent of national needs.
He said, “Our call today is straightforward. The Federal Government must suspend or reject the proposed tariff, expose and correct its economic, social, and ethical flaws, and educate the public on the dangers of monopolies in vital sectors like fuel, cement, and food. Above all, it must promote transparency and fair competition to protect consumers, workers, and small businesses across the country.
“The facts are clear. The Dangote Refinery currently meets only about 40 percent of national fuel demand. Restricting imports now will not stabilize supply; it will create scarcity. Imported petrol today lands at roughly N802 per litre, while the locally refined product from Dangote lands at N929.72 per litre.
“Adding a 15 percent tariff will only make things worse, increasing pump prices by between N140 and N165 per litre and driving up the cost of transportation, food, and essential goods.”
Nwagwu called for transparency in refinery supply agreements and monthly publication of refinery output, import volumes, and landing costs by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The organisation further recommended establishing a downstream competition framework under the Petroleum Industry Act and an energy market monitoring unit under the Federal Competition and Consumer Protection Commission to prevent cartel formation.
