Nigeria’s average landing cost for imported premium motor spirit (PMS) has dropped to approximately ₦829.77 per litre, data from the country’s downstream sector shows — despite a newly imposed 15 percent import tariff aimed at protecting local refineries.
The steep reduction follows a global softening of crude oil prices and freight charges, offsetting part of the domestic tariff burden. Analysts expect retail pump prices to reflect the savings—with one financial analyst commenting: “If the landing cost remains at this level, we should begin to see meaningful relief at the forecourt, provided local logistics also improve.”
Industry stakeholders warned, however, that final pump prices depend on currency strength, transport costs and margin adjustments by marketers. The Petroleum Products and Alternative Fuels Association of Nigeria (PPAFAN) urged the government to move swiftly to reopen and support refineries rather than rely solely on tariffs.
The import tariff, earlier set at 15 percent of Cost, Insurance and Freight (CIF) value, was approved by President Bola Tinubu in a bid to stabilise the downstream market and encourage domestic refining. Highest-value imports will now carry the additional duty as part of the administration’s Energy Security and Fiscal Sustainability Agenda.
