Former Kogi West Senator Dino Melaye has cited Germany’s decision to reduce taxes on petrol and diesel as evidence that governments can take steps to protect citizens from sharp increases in energy costs.
Melaye made the comparison while defending the proposal by former Vice-President Atiku Abubakar to introduce a targeted fuel subsidy if elected president in 2027.
Germany recently announced a reduction of about €0.17 per litre in taxes on petrol and diesel as part of measures aimed at easing the impact of higher fuel prices on households and businesses.
Melaye argued that Nigeria could also consider temporary interventions when high energy costs put pressure on consumers and businesses.
He noted that fuel prices affect more than motorists, as higher transport costs can increase the cost of moving food, operating businesses and producing goods.
Atiku has said his proposed subsidy would differ from Nigeria’s previous petrol subsidy system, which was criticised over its cost and lack of transparency.
His proposed approach would focus on supporting domestic refining by making crude oil available to local refineries at lower prices. The objective, according to his camp, would be to reduce production costs and bring down petrol prices.
Melaye said the German measure showed that government support for consumers during periods of severe energy-price increases could coexist with broader economic reforms.
The comparison does not mean Germany has adopted Atiku’s proposed model. While Germany is reducing fuel taxes, Atiku’s proposal centres on government support for domestic crude supply and refining.
Nigeria’s fuel subsidy debate intensified after the Tinubu administration ended the petrol subsidy in 2023, a decision the government said was necessary to reduce the financial burden on the country.
Atiku has continued to criticise the policy, arguing that the removal has increased pressure on households and contributed to higher living costs. His proposed alternative has, however, faced questions from the ruling All Progressives Congress over its funding, legal framework and implementation.
Melaye’s comments have therefore renewed debate over how Nigeria can cushion consumers from high fuel prices without returning to the weaknesses associated with the former subsidy system.
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