Nigerians face rising fuel costs as 94 countries subsidize fuel amid US-Iran crisis

The International Energy Agency reported that over 115 countries have introduced measures, including price support, energy conservation, and structural policies, to address the energy shock. In Nigeria, energy economists and industry stakeholders, including the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, and former President of the Nigerian Association of Energy Economics, Prof Adeola Adenikinju, have called for government interventions to support vulnerable citizens and reduce transportation costs. The Independent Petroleum Marketers Association of Nigeria also urged a reduction in taxes and charges on petroleum products.

However, the Federal Government, through the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has rejected calls to reintroduce fuel subsidies or price controls, emphasizing a market-driven approach and the irreversibility of subsidy removal. Oyedele stated that the government believes market-based pricing is necessary to attract investment and maintain macroeconomic stability, while also noting that the geopolitical crisis could present new opportunities for Nigeria to