The Nigerian government has announced plans to introduce a petrol consumption tax beginning in January 2026. Under the policy, a 5% levy will be charged — meaning Nigerians will pay ₦500 for every ₦10,000 spent on petrol.
According to officials, the tax is aimed at discouraging fossil fuel use while promoting a shift to cleaner energy alternatives. It will be collected directly at the point of purchase but will not apply to kerosene, cooking gas, Compressed Natural Gas (CNG), or other eco-friendly fuels.
The government says revenue from the levy will be invested in renewable energy initiatives and climate change projects.
However, economic analysts caution that the move could worsen inflation, particularly by driving up transport costs. Critics argue that the flat-rate tax will hit low-income households hardest, as they already struggle with rising fuel prices.
While authorities present the levy as a step toward sustainability and energy transition, many Nigerians remain worried about the added financial burden it will place on everyday life
