15 per cent fuel import duty may backfire, result in petrol price manipulation – NLC warns

The Nigeria Labour Congress (NLC) has cautioned against the Nigerian government’s newly approved 15 per cent import tariff on petrol and diesel, warning that the policy could backfire if it leads to price manipulation or consumer exploitation.

The spokesperson of NLC, Benson Upah, said this in an interview with DAILY POST.

He was reacting to President Bola Ahmed Tinubu’s approval of a 15 per cent import duty on petrol and diesel.

He said while the tariff could help encourage local refining and reduce Nigeria’s dependence on imported fuel, it must not become a tool for monopolies or artificial price hikes.

He, however, cautioned that Nigerians could suffer higher fuel prices if the tariff is used to manipulate supply or shield certain players from competition.

“If local capacity can meet local demand without distortions or manipulations to achieve undue business advantage at the expense of the consumer, this will be quite okay because we need to protect local industries.

“On the other hand, if this design is intended to guarantee local supply at the outset only for the taps to be turned off shortly after, then this will be terrible for the consumer, for it will represent at least a 15 percent additional tax on imported products,” he added.

Meanwhile, pump prices of petrol in Lagos and Abuja currently range between N925 and N960 per litre. Major marketers such as NNPCL, Eterna, and AA Rano recently adjusted their prices in Abuja to N940 per litre, down from N950–N955, following improvements in Dangote’s fuel supply.

Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) indicates that Dangote Refinery currently supplies about 20 million litres of petrol daily, out of Nigeria’s estimated 45 to 50 million litres of average daily consumption.

However, Dangote Refinery recently disclosed that it is now loading over 45 million litres of Premium Motor Spirit (PMS) daily and has backed the government’s 15 per cent import duty on refined petroleum products.