A public policy expert, Rotimi Matthew, has criticised the Federal Government’s plan to introduce a 15 per cent tariff on imported petrol and diesel, warning that the move will worsen the cost of living and discourage healthy competition in the oil sector.
Matthew said the new tariff, which government officials claim will promote energy security and market stability, is “a poorly thought-out policy” that could trigger fuel scarcity and higher pump prices across the country.
According to him, Nigeria’s daily fuel demand stands at about 66 million litres, while the Dangote Refinery currently produces far below that amount. He argued that taxing imported fuel—the main source meeting consumer needs—would only make life harder for Nigerians.
“The refinery can’t yet meet local demand, but the government wants to punish importers who keep the system running,” Matthew said. “You can’t achieve energy security by taxing your backup supply before your main source works.”
He further described the policy as protectionist, saying it shields inefficiency instead of encouraging competition. “Other countries with strong refineries still allow open markets. If our $20 billion refinery can’t compete, the answer isn’t to kill competition but to fix the system,” he added.
Matthew estimated that the proposed 15 per cent duty would add between ₦95 and ₦100 per litre to the cost of petrol, which could rise to as much as ₦165 per litre after transportation and storage expenses. “This will raise food prices, transport fares, and operating costs for small businesses,” he warned.
He also accused the government of double standards, noting that while imports are being discouraged, some refiners still import blending components for their operations.
“This isn’t reform—it’s an attempt to legalise monopoly under the guise of public interest,” Matthew said. “If this policy is implemented, Nigerians will pay the price while a few players benefit.”
A major fuel marketer who also spoke on the matter agreed that the new tariff would hurt the masses. “People think it’s meant to protect local refiners, but in the end, it’s the public that will bear the brunt,” the marketer said. “Fuel prices will rise, and the government will end up making more money from citizens’ hardship.”
