Petrol Tax Hike Looms: Nigerians Set For 5% Charge On Fuel Purchases From 2026

By Micheal Chukwuebuka

FROM January 2026, Nigerians will be required to pay a new levy on petrol consumption as the Federal Government introduces a 5% fossil fuel tax.

Under the policy, motorists and consumers will be charged N500 on every N10,000 spent on petrol.

President Bola Tinubu

The measure, according to the government, is aimed at boosting revenue generation while encouraging a gradual transition towards cleaner energy alternatives.

The announcement comes at a time of mounting economic pressures, with households and businesses already grappling with high fuel costs and inflation.