The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Nigerian National Petroleum Company Limited (NNPC) to expedite efforts toward reopening the nation’s refineries before December, warning that failure to do so could trigger fuel scarcity and price hikes during the festive season.
The call came amid growing concerns over President Bola Tinubu’s approval of a 15% fuel import tariff, a move the government says will boost local refining but which marketers fear could push petrol prices above ₦1,000 per litre if not properly managed.
15% Fuel Import Tariff: PETROAN Warns Against Poor Implementation
Speaking in Port Harcourt during a courtesy visit to the Pro-Chancellor and Chairman of the Governing Council of the Ignatius Ajuru University of Education, Dr. Chinyere Igwe, PETROAN National President, Dr. Billy Gillis-Harry, described the 15% fuel import tariff as a bold step that could strengthen the downstream sector and encourage energy independence.
Harry, however, cautioned that if the measure is not carefully implemented, it could cripple fuel importation and create room for monopoly, with devastating effects on smaller players.
“NNPC must complete its partnership agreements and ensure that refineries start producing before December.
Any delay could lead to scarcity and further hike in fuel prices during the Yuletide,” he warned.
He noted that while PETROAN supports the policy’s long-term objectives, the association remains concerned about its immediate impact on importers and fuel retailers.
“Importers have always served as a price-check mechanism against profiteering. If they are wiped out of the system due to poor implementation of the 15% fuel import tariff, the market could slide into monopoly, which would not be healthy for Nigerians,” he added.
Local Refining and Market Stability
Harry emphasised that the new tariff could serve as a catalyst for reviving Nigeria’s dormant refineries — including the Port Harcourt, Warri, and Kaduna plants — which have remained inactive despite years of rehabilitation spending.
He appealed to NNPC Limited to ensure steady crude oil supply to both public and private refineries, such as the Dangote Refinery and modular plants, to ensure that local refining meets national demand.
“Availability of crude feedstock is essential. Without adequate crude supply, even local refineries will struggle, and the 15% fuel import tariff policy will fail to deliver the intended results,” he stated.
The PETROAN president further announced a partnership with the Ignatius Ajuru University of Education to train students in petroleum marketing and energy management, a step he said would enhance knowledge transfer and workforce development in the energy sector.
Stakeholders Split Over Policy Impact
The Federal Government introduced the 15% fuel import tariff as part of broader economic reforms aimed at promoting self-sufficiency in fuel production.
However, oil marketers and analysts have issued mixed reactions, warning that the policy could backfire if domestic refining capacity does not ramp up quickly.
Industry operators told PUNCH that unless Nigeria’s state-owned refineries and private facilities like Dangote Refinery become fully operational, the tariff could deepen fuel scarcity and further strain the economy.
PETROAN, while supporting the intent of the policy, called for active oversight by regulatory bodies such as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to prevent exploitation.
“The government must ensure fair regulation and guard against monopoly. This policy can transform the market if applied properly, but poor oversight could make it counterproductive,” Harry stressed.
Presidency Defends 15% Fuel Import Tariff as Strategic Reform
Meanwhile, the Presidency has defended the introduction of the 15% fuel import tariff, describing it as a “strategic bridge” toward self-sufficiency and a stable energy future for Nigeria.
According to the Special Adviser to the President on Media and Public Communications, Sunday Dare, the policy aims to reduce Nigeria’s dependence on imported fuel and strengthen domestic refining.
“For years, Nigeria has exported jobs and drained foreign exchange by relying on imported petrol.
The 15% fuel import tariff will reverse this trend by encouraging local refining and ensuring that our oil wealth benefits our citizens directly,” Dare explained in a statement.
He added that the government’s goal is to make imported fuel less competitive, creating incentives for investors to channel resources into domestic refining ventures.
“By making imported fuel less competitive, we’re supporting refineries like Dangote and others across the country.
This policy will help stabilize prices in the long run, attract new investments, and create jobs in the energy value chain,” Dare said.
He described the measure as a transition from “dependence to independence,” arguing that initial market adjustments would eventually give way to price stability and increased local capacity.
Balancing Reforms With Market Realities
While stakeholders agree on the need for reforms, many have urged the government to balance its ambitions with practical measures to protect consumers from inflationary shocks.
Economic analysts say the 15% fuel import tariff could yield significant benefits — including stronger foreign reserves, job creation, and improved energy security — if accompanied by swift action to revive the refineries.
However, without local production, the policy could worsen supply shortages and drive pump prices higher, especially during the end-of-year festive period when fuel demand typically spikes.
For now, PETROAN insists that the best way to prevent hardship is for NNPC to reopen refineries before December, ensuring adequate supply to cushion the short-term effects of the tariff.
“This policy is not the problem,” Harry maintained. “What matters is how it’s implemented. With transparency, proper regulation, and operational refineries, Nigeria will achieve energy stability faster than anyone expects.”
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