Fuel Price Warning: PAACA Advises FG to Suspend Tariff to Avoid Scarcity and Economic Hardship.

The Peering Advocacy and Advancement Centre in Africa (PAACA) has urged the Federal Government to postpone the planned 15 per cent import tariff on petrol and diesel, cautioning that the move could trigger a sharp spike in pump prices and intensify current economic hardship.

The organization insists the policy must not be implemented until domestic refining capacity can meet at least 80 per cent of national demand. PAACA Executive Director, Ezenwa Nwagwu, stated at a press conference in Abuja that current data shows domestic production is insufficient, warning that forcing importers out would cause scarcity and price increases. He highlighted that imported petrol currently lands cheaper at about ₦802 per litre, compared to the locally refined product at ₦929.72 per litre.

Nwagwu projected that the proposed 15 per cent tariff would further escalate costs, increasing the pump price by an estimated ₦140 to ₦165 per litre nationwide. He argued that the policy is premature because the Dangote Refinery, the presumed beneficiary, only supplies about 40 per cent of national demand and still relies on imported components for blending.

Furthermore, Nwagwu cautioned against relying on a single major supplier, warning that it could grant that company undue control over pricing and distribution, while simultaneously sidelining independent depot owners and marketers who have made significant infrastructure investments. He reiterated his plea for the government to suspend the tariff until domestic refining can cover at least 80 per cent of national needs.

Nwagwu concluded with a direct mandate for the Federal Government: “Our call today is straightforward. The Federal Government must suspend or reject the proposed tariff, expose and correct its economic, social, and ethical flaws, and educate the public on the dangers of monopolies in vital sectors like fuel, cement, and food.” His final demand was for the government to promote transparency and fair competition to safeguard consumers, workers, and small businesses nationwide.

Nwagwu provided clear data to oppose the tariff: “The facts are clear. The Dangote Refinery currently meets only about 40 per cent of national fuel demand. Restricting imports now will not stabilize supply; it will create scarcity.” He pointed out the cost disparity, noting that imported petrol lands at approximately ₦802 per litre, while Dangote’s locally refined product lands higher at ₦929.72 per litre.

He warned that adding a 15 per cent tariff would drastically worsen the situation, projecting a ₦140 to ₦165 per litre increase in pump prices, thereby driving up costs for transportation, food, and essential goods.

To ensure fairness, Nwagwu called for transparency in refinery supply agreements and the monthly publication of refinery output, import volumes, and landing costs by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

PAACA further recommended establishing a downstream competition framework under the Petroleum Industry Act (PIA) and a market monitoring unit under the Federal Competition and Consumer Protection Commission (FCCPC) to prevent cartel formation. Nwagwu concluded that true energy security relies on multiple suppliers, not the protection of a single player, stressing that government policies must prioritize citizens’ welfare.