Middle East Crisis: TMSG Defends FG’s Fuel Price Cap, Says Measures Are Not Subsidya

Oru Leonard

The Tinubu Media Support Group (TMSG), has defended the Federal Government’s fuel price cap and other relief measures, describing them as temporary interventions consistent with efforts by more than 115 countries to cushion the impact of the Middle East conflict on their citizens.

The group said the measures demonstrated the President Bola Tinubu administration’s response to the global cost-of-living crisis and the need to protect Nigerians from rising fuel prices arising from international market uncertainties.

TMSG stated this in a statement signed by its Chairman, Emeka Nwankpa, and Secretary, Dapo Okubanjo.

It noted that several countries, including Germany, Spain, Greece, India, Pakistan, Australia, Mozambique and Kenya, had introduced fuel price caps, discounts and other interventions to ease the burden of rising energy costs.

The group also observed that the United States was considering measures to reduce domestic fuel prices while pursuing diplomatic efforts to resolve the crisis in the Middle East.

“We are aware that over 115 countries have moved fast in recent weeks to introduce measures to cushion the effects of the Middle East conflict on fuel prices, towards alleviating anticipated hardship on the people across the world,” the statement said.

TMSG added that the Nigerian government’s announcement of a month-long fuel discount, a fuel price cap subject to monthly review and other support measures was consistent with the approach adopted by several countries facing similar economic pressures.

The group, however, rejected suggestions by opposition politicians that the interventions amounted to a return to fuel subsidy.

It described the measures as temporary reliefs designed to protect consumers and businesses from the immediate effects of the ongoing conflict rather than a reversal of the government’s fuel subsidy removal policy.

The statement also criticised opposition figures for condemning Nigeria’s intervention despite praising similar measures adopted by other countries.

TMSG specifically cited former Vice-President Atiku Abubakar, whom it accused of criticising the Nigerian government’s initiative after reportedly commending Germany’s 90-day fuel discount of 17 cents per litre.

The group argued that Nigeria’s announced package extended beyond fuel price relief to include measures aimed at supporting vulnerable households, small businesses and low-income earners.

According to the statement, the interventions include increased funding for cash transfers to vulnerable households, subsidised credit for small businesses and consumers, and accelerated deployment of compressed natural gas (CNG) buses and related infrastructure in collaboration with state governments.

Other measures, it said, include a proposed excess-profit tax targeting businesses found to have engaged in price gouging and enhanced tax relief for low-income earners under the 2027 Finance Bill.

The group also highlighted the proposed establishment of a National Strategic Fuel Reserve to help protect Nigeria against future disruptions in global crude oil supplies.

It explained that the reserve would enable the government to release refined petroleum products into the domestic market when necessary, helping to moderate price volatility without fixing prices or restoring fuel subsidies.

TMSG maintained that the fuel discount and price cap should not be interpreted as a return to the previous subsidy regime, insisting that the measures were intended to provide temporary relief while allowing market-based pricing to continue.

“As the Finance Minister, Taiwo Oyedele, has emphasised, a marginal discount for a short period borne by a retailer does not amount to a return of fuel subsidy in any guise,” the statement said.

The group further argued that the government was not using public funds or allocations from the Federation Account to pay part of the cost of petrol purchased by motorists.

It added that the same principle applied to the proposed price ceiling being negotiated with refineries and fuel importers, insisting that the interventions were distinct from the former subsidy arrangement.

TMSG urged Nigerians to assess the measures within the context of similar actions being taken by other countries to protect their citizens from the economic consequences of the Middle East crisis.

It said the interventions should be viewed as temporary responses to an extraordinary international situation, pending a return to stability in the global energy market.