The Major Energy Marketers Association of Nigeria (MEMAN) has warned that the proposed 15 per cent import tariff on petrol and diesel could raise pump prices above N1,000 per litre.
MEMAN’s executive secretary, Clement Isong, said the tariff, if implemented, would have far-reaching effects on consumers, transporters, and small businesses already battling inflation.
“We are deeply concerned that such a tariff could push petrol to nearly N1,000 per litre in Lagos and over N1,020 in inland cities,” he said.
He spoke during a joint webinar organised by MEMAN and S&P Global Commodity Insights on Friday in Lagos. The webinar examined the policy’s implications on the downstream petroleum market.
According to him, diesel prices could rise to between N1,164 and N1,194 per litre, depending on marketing margins, which would drive up logistics costs and eventually be reflected in food prices.
Mr Isong described the proposed policy as “potentially regressive,” warning that it could deepen hardship if not matched with measures to protect the poor.
“Low-income earners and small business operators will feel the immediate impact,” he said.
He urged the federal government to ensure transparency and accountability in fuel pricing.
“Government should publish open-market price computations and end-user prices regularly so that Nigerians can see what drives pump costs,” he said.
Explaining the economics behind the policy, Mr Isong noted that while the tariff was designed to help local refiners recover costs and compete globally, it would also increase the landed cost of imported fuel.
“Ultimately, importers will pass these additional costs to consumers,” he said.
He warned that such a cost transfer could destabilise the market.
“If prices rise sharply, smaller importers may be squeezed out, leaving only a few dominant players,” he said.
Mr Isong, therefore, called for strong regulatory oversight.
“The Nigerian Midstream and Downstream Petroleum Regulatory Authority must be vigilant to ensure fair competition and nationwide product availability,” he said.
He proposed alternatives that could achieve the same policy goals without affecting consumers and recommended tariff caps to mitigate the impacts.
“Government can adopt a phased or conditional tariff tied to verified increases in domestic refining capacity.
“A fixed cap of N50 per litre or $20 per metric tonne could limit the burden on ordinary Nigerians,” he said.
He emphasised the need for market transparency, urging reforms in border and customs operations.
“Enhanced anti-smuggling measures and tighter customs checks will prevent tariff evasion and protect local investments,” he said.
Mr Isong added that proactive exchange rate management could serve as natural protection for local refiners.
“An undervalued naira can make imports more expensive and domestic production more attractive,” he explained.
(NAN)
