World fights costly petrol. Tinubu defends it

By Farooq A. Kperogi

Something extraordinary is happening across the world. Governments are losing sleep over the intolerably rising prices of petrol and diesel. They are cutting taxes, subsidizing fuel, capping prices, releasing strategic reserves, relaxing regulations and strong-arming oil companies. Where relief has not yet come, governments are promising it.

Tinubu’s Nigeria is the exception. It is marching callously and ignominiously in the opposite direction. It derives perverse joy and pride in its soulless, cold-hearted strangulation of the people.

A few examples of countries that are doing the exact opposite of Tinubu’s insensate destruction will suffice.

On Friday, October 2, the G7 agreed to release 100 million barrels of diesel and crude oil from emergency reserves to bring prices down. The decision followed pressure from the Trump administration, which had threatened restrictions on American diesel exports if European governments did not release their reserves. Oil prices fell almost immediately after the announcement.

Germany has cut taxes on petrol and diesel by 17 euro cents per liter through December and is discussing a fuel-price cap. Australia halved its petrol and diesel excise, shaving 26.3 Australian cents off every liter. Canada suspended its federal excise tax on gasoline and diesel.

Ireland cut petrol taxes by 27 cents per liter and diesel taxes by 32 cents. Spain proposed relief of up to 30 euro cents per liter. South Korea imposed a fuel-price ceiling. Brazil has subsidized gasoline and cut taxes. Italy leaned on major oil companies to cap petrol and diesel prices. Kenya cut VAT on petroleum products.

President William Ruto personally announced a reduction in diesel price after public protests over rapidly rising energy costs. His government had already spent substantial public funds cushioning fuel prices.

Ghana’s President John Mahama said his government was considering cutting fuel margins and reviewing a new petroleum levy to relieve the pain at the pump after petrol rose about 15% and diesel about 19% in one pricing window. He also raised the possibility of a supply agreement with the Dangote refinery.

My research for this column has documented at least 50 cross-continent national cases of state interventions designed to reduce the cost of petrol or diesel, and that’s not even an exhaustive global count.

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