FG Shifts 15% Fuel Import Duty to 2026 After Fresh Review

The Federal Government has deferred the implementation of the planned 15 per cent import duty on petrol and diesel to the first quarter of 2026, following President Bola Tinubu’s approval of a new timeline after further consultations with industry regulators and economic advisers.

The levy, originally scheduled to take effect on November 21, 2025, was earlier perceived to have been suspended indefinitely. However, documents obtained from the Federal Inland Revenue Service showed that the President approved a postponement—not a cancellation—to allow for additional review and market readiness assessments.

The FIRS Chairman, Zacch Adedeji, had in a memo dated November 7, requested a shift in the rollout, warning that the downstream sector needed more time to align technical frameworks, stabilise supply chains, and verify the capacity of emerging local refineries. He emphasised that the duty, although intended to boost domestic refining, must be introduced in a way that avoids fuel scarcity or abrupt price hikes.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority earlier confirmed that the duty would no longer be implemented for now, noting that the President endorsed the pause. The agency explained that the policy, while designed to strengthen the naira-based oil market and support refineries such as Dangote Refinery and modular plants, could worsen inflation if enforced prematurely.

Tinubu’s directive stated that the duty should be “deferred for further review in the first quarter of 2026,” giving regulators time to track local refining output, evaluate consumer price trends, and complete stakeholder engagement.

Before the deferral, the approval of the tariff had sparked concern across the oil and gas sector, with marketers warning that the 15 per cent charge could significantly increase landing costs and push retail prices higher. Some industry projections estimated potential increases of over ₦100 per litre if the tariff had gone ahead this year.

Oil marketers and industry groups have since welcomed the government’s decision, describing it as a timely corrective step. PETROAN President Billy Gillis-Harry said the review showed the administration was sensitive to economic realities and willing to adjust policies in the interest of consumers. IPMAN spokesperson Chinedu Ukadike echoed this view, noting that the planned duty would have exerted more pressure on already fragile household incomes.

Energy analysts also argue that the postponement provides breathing room for local refineries to stabilise operations before competing with imported products under a new tariff regime.

Meanwhile, the NMDPRA has assured that the country has adequate stocks of petrol, diesel and cooking gas sourced from both imports and local production. The Authority advised against panic buying or hoarding, stressing that it continues to monitor distribution nationwide.

With the updated government directive, the 15 per cent ad-valorem duty will now be reconsidered in early 2026, when the administration is expected to decide whether to implement, modify or further delay the policy based on market conditions.