The Peering Advocacy and Advancement Centre in Africa has urged the Federal Government to delay the planned introduction of a 15 per cent import tariff on petrol and diesel, warning that the move could trigger a sharp rise in pump prices and worsen the current economic hardship.
The organisation said the policy should not be implemented until domestic refining capacity reaches at least 80 per cent of national demand.
In his speech at a press conference in Abuja, the Executive Director of PAACA, Ezenwa Nwagwu, said data show that domestic refining is not yet sufficient to meet national demand, and forcing importers out of the market would lead to scarcity and higher prices.
According to him, imported petrol currently lands at about N802 per litre, while locally refined products land at N929.72 per litre.
He said adding a 15 per cent tariff would further increase costs, pushing the pump price up by between N140 and N165 per litre across the country. He noted that the Dangote Refinery, which the policy appears set to favour, currently supplies about 40 per cent of national demand and still imports components for its own blending, making the case for import restriction premature.
Nwagwu also warned that depending on one major supplier could give that company control over pricing and distribution while sidelining independent depot owners and marketers who have invested heavily in infrastructure. He urged the government to suspend the proposed tariff until domestic refining capacity reaches at least 80 per cent of national needs.
