Starting January 2026, Nigerians will pay an extra 5% fuel Fuel Taxtax on every litre of fuel, under a new law signed by President Tinubu.
With fuel already expensive, the levy will push costs even higher for motorists, transporters, and businesses that depend on fuel.
The Nigerian Harmonized Tax Act 2025, signed into law in June, introduces a 5% surcharge on fossil fuels such as petrol and diesel beginning January 1, 2026. The aim is to generate funds to support the transition to clean energy.
Certain fuels, however, are exempt from the levy — including household kerosene, cooking gas (LPG), compressed natural gas (CNG), and other renewable energy sources. According to estimates, the surcharge could generate about ₦796 billion annually from petrol alone.
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