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Tax law: Nigerians to pay additional N45 per liter of petrol

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Nigerians buying petrol will pay an additional N45 for each litre of fuel they purchase come 2026 if the price remains unchanged at the rate of N900. This is due to the provision of a five percent surcharge in the 2025 Nigeria Tax Administration Act on refined petroleum products in a bid to promote the use of clean energy.

The five per cent surcharge on refined petroleum products is contained in the Nigeria Tax Administration Act, one of four tax reform bills signed into law by President Bola Tinubu on June 26, 2025, with implementation slated for January 2026.

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However, items exempted from the new tax are clean or renewable energy products, as well as household kerosene, cooking gas, and Compressed Natural Gas.

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