By Abiola Olawale
The Nigerian downstream petroleum sector is bracing for a fresh crisis as oil marketers rejected the Federal Government’s newly approved 15% ad-valorem import duty on Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO), popularly known as diesel.
The marketers warn that the new tariff is not only an immediate trigger for a significant fuel price hike but is also a deliberate policy move designed to entrench a monopoly in the multi-billion-naira industry.
They called on regulatory agencies like the Nigerian Midstream and Downstream Petroleum Regulatory Agency (NMDPRA) to be on red alert against monopoly, as not regulating the sector properly might harm the market.
This was contained in a press statement by the National Public Relations Officer (PRO) of PETROAN, Dr Joseph Obele.
In the statement, the National President of the association, Dr Billy Harry, on Friday, October 31, 2025, speaking during a courtesy visit to the new Pro-Chancellor and Chairman of the Governing Council of Ignatius Ajuru University of Education, Port Harcourt, Dr Chinyere Igwe, reiterated that the benefits of this policy will outweigh the potential disadvantages.
He pointed out that importers of petroleum products, which were a price check mechanism against profiteering, will be out of business if not properly managed.
The statement reads in part: ‘’Dr. Billy Harry emphasized that the benefits of this policy will outweigh the potential disadvantages. However, he called on regulatory agencies such as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to be on red alert against monopoly, warning that if local refineries are not properly regulated, it could lead to a monopoly that might harm the market. He noted that importers of petroleum products, which were a price check mechanism against profiteering, will be out of business if not properly managed. Instead, he urged importers of petroleum products to look inwards towards patronizing local refineries.’’
“The new policy has also prompted NNPC to seek private partners in managing the four nation-owned refineries. According to Bayo Ojulari, NNPC’s Group Chief Executive Officer, the company is looking for technical equity partners to help revive its long-dormant refineries, which have yet to resume operations despite years of heavy investment. This move is seen as crucial to Nigeria’s long-term energy security and could potentially transform the country from a fuel importer to a net exporter.
Dr Billy Harry also calls on NNPC to complete the partnership agreement very soon and start production at Nigeria’s refineries before December to avert any form of fuel scarcity or price hike during the Yuletide season. This timely action will help ensure a stable supply of petroleum products and support the country’s economic growth.’’
This comes after President Bola Tinubu approved a 15% ad-valorem import duty on diesel and premium motor spirit (PMS), commonly known as petrol.
