TMSG defends Tinubu’s fuel price cap, says measures are temporary
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TMSG defends Tinubu’s fuel price cap, says measures are temporary
By Alabidun Shuaib AbdulRahman
The Tinubu Media Support Group, TMSG has defended the Federal Government’s proposed fuel price cap and other relief measures, insisting that the interventions do not amount to a return to petrol subsidy.
The group said the measures were consistent with steps taken by other countries to cushion the effects of the Middle East crisis on fuel prices and the cost of living.
In a statement jointly signed by its Chairman, Emeka Nwankpa, and Secretary, Dapo Okubanjo, TMSG said more than 115 countries had introduced or considered measures to mitigate the economic impact of the conflict.
It listed Germany, Spain, Greece, India, Pakistan, Australia, Mozambique and Kenya among countries that had adopted fuel price caps, discounts or similar interventions.
The group said Nigeria’s proposed measures, including a month-long fuel discount and a price cap subject to monthly review, were intended to provide temporary relief to consumers amid global market uncertainty.
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It stated, “So we are not surprised that the Nigerian government announced several measures, including a month-long fuel discount as well as a wider fuel price cap that is subject to monthly review.”
TMSG argued that the interventions should not be confused with the previous petrol subsidy regime, which involved government payments to cover part of the cost of fuel.
The group criticised opposition figures who described the measures as a return to subsidy, accusing them of politicising government efforts to ease the pressure on households and businesses.
It specifically faulted former Vice-President Atiku Abubakar over his reported criticism of the Nigerian government’s measures, alleging that he had praised Germany’s fuel discount initiative.
The group said Nigeria’s proposed intervention extended beyond fuel discounts and included measures intended to support vulnerable households and small businesses.
According to TMSG, the package includes increased funding for cash transfers to vulnerable households, subsidised credit for small businesses and consumers, and accelerated deployment of compressed natural gas buses and supporting infrastructure in collaboration with state governments.
It also listed 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 among the measures.
The group said the Federal Government was also considering investment in a National Strategic Fuel Reserve to reduce the effects of future disruptions to global crude oil supplies.
It argued that releasing refined petroleum products from such a reserve could help moderate price volatility without requiring the government to fix prices or reinstate petrol subsidies.
TMSG maintained that the distinction between the proposed interventions and the former subsidy system lay in how the relief would be funded.
It said the government was not using public funds or money from the Federation Account to pay part of the cost of petrol purchased by motorists.
The group also argued that the proposed price ceiling being discussed with refineries and importers should not automatically be interpreted as a return to subsidy.
It cited the position attributed to the Minister of Finance, Taiwo Oyedele, that a temporary discount borne by a retailer did not constitute a government-funded subsidy.
TMSG urged Nigerians to assess the measures against the backdrop of international efforts to cushion the impact of the Middle East crisis rather than view them solely through the lens of domestic politics.
It said the interventions were intended to provide temporary relief while governments and markets responded to the global energy situation.
The group maintained that the success of the measures would ultimately depend on their implementation, the extent of relief delivered to consumers and their effect on fuel prices and household spending.
