Suspension Of 15 Percent Petrol Import Duty Prevents N130 Per Litre Price Hike, Says PENGASSAN President

 

The Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, has revealed that the implementation of a 15 percent import duty on petrol and diesel would have pushed the cost of petrol up by at least N130 per litre. This revelation was made by PENGASSAN President, Festus Osifo, during an interview with Arise Television on Thursday.

The Nigerian Government recently suspended plans to introduce the 15 percent import duty on premium motor spirit and automotive gas oil, a decision that PENGASSAN believes was carefully influenced by stakeholders within the labor sector. Osifo noted that the Trade Union Congress, TUC, has been working behind the scenes to ensure the suspension of the duty, highlighting the crucial role of unions in protecting consumers from sudden price surges.

Local refineries, according to Osifo, are currently supplying only about 40 percent of Nigeria’s daily petroleum demand. He explained that if the import duty had been implemented, not only would imported petrol and diesel have become more expensive, but domestic producers would also have likely increased their prices to adjust to the new market conditions. This dual effect, he added, could have created a severe economic strain on Nigerians, many of whom are already grappling with rising living costs.

Osifo further emphasized that the suspension of the import duty is not merely a regulatory decision but a significant relief for households and businesses across the country. He argued that price stability in the petroleum sector remains crucial to sustaining economic activity, particularly in transportation and manufacturing, where fuel costs directly influence production expenses and consumer prices.

The PENGASSAN president also stressed the need for increased investment in local refining capacity, pointing out that reliance on imported fuel exposes the country to global price shocks. Strengthening domestic production, he noted, would ensure a more predictable pricing structure for petrol and diesel while reducing vulnerability to foreign market fluctuations.

This development marks a notable moment in Nigeria’s energy sector, where government policy, labor influence, and industrial capacity intersect to determine the pricing of essential commodities. Stakeholders, including labor unions, policymakers, and petroleum producers, continue to monitor the situation closely, recognizing the broader economic implications of fuel pricing in a country where petrol remains a critical driver of daily economic activities.

PENGASSAN’s statement underscores the delicate balance between government revenue generation through import duties and protecting citizens from sudden spikes in fuel costs, emphasizing that well-considered policy adjustments can mitigate financial burdens on the population.