Oil Marketers
By Abayomi Susan
The introduction of a 15% import tariff on petrol is expected to cost Nigerians approximately N1 trillion (or N973.6 billion) extra per year, translating to about N2.67 billion daily. This tariff could increase the landing cost of petrol by around N99.72 per litre, potentially pushing pump prices up significantly, with some estimates suggesting prices might reach between N1,045 and N1,145 per litre.
The tariff aims to support domestic refineries like the Dangote Refinery, promoting energy security and self-sufficiency in Nigeria. By making imports more expensive, the government hopes to incentivize the use of locally refined products, thereby boosting the country’s refining capacity and reducing reliance on foreign exchange for fuel imports.
However, the move has sparked debate among stakeholders. Some, like billionaire Femi Otedola, see it as a bold step towards protecting local refineries and promoting economic growth. Others, like the Nigeria Labour Congress (NLC), warn that it could backfire if not managed properly, leading to price manipulation and further economic hardship for Nigerians.
The additional cost of the tariff will likely be passed on to consumers, intensifying the cost-of-living crisis in Nigeria. With the country’s economy already under strain, the increased fuel prices could have far-reaching implications for businesses, transportation, and household budgets.
Given the potential impact on fuel prices and the economy, it’s essential to consider whether the tariff will achieve its intended goals of promoting local refineries and reducing reliance on imports. Would the benefits of protecting local refineries outweigh the potential drawbacks of increased fuel prices for Nigerians?
