As Nigerians face high transportation costs due to increased petrol prices, countries across Africa, Asia, Europe, and North America have implemented various measures to mitigate the impact of rising fuel costs. These interventions include fuel subsidies, tax cuts, temporary reductions in fuel levies, public transport support, and the release of strategic oil reserves. President Bola Tinubu stated that state governors agreed to adopt measures to reduce transportation costs by October 1, including deploying Compressed Natural Gas and electric vehicles in public transportation.
Despite Tinubu's claims that over 120,000 vehicles have been converted to Compressed Natural Gas, with over 400 certified conversion centers and more than 90 CNG refueling stations nationwide, findings indicate that several states may struggle to meet the target. This is due to the uneven distribution of CNG infrastructure across the country, with some states having only one CNG refueling station, while others have none. Additionally, there is a shortage of CNG conversion facilities in many parts of the country.
Tinubu has ruled out returning to the petrol subsidy regime, arguing that Nigeria must reduce its exposure to fluctuations in international energy markets. He cited states such as Borno, Kaduna, Oyo, Adamawa, Enugu, and Plateau as examples of how alternative-energy transport can reduce fares. However, the implementation of CNG and electric vehicles in public transportation faces significant challenges due to infrastructure constraints.
Kenya has combined fuel subsidies, tax adjustments, and import arrangements to moderate increases in pump prices. President William Ruto stated that the government deployed Sh6.5 billion to subsidize fuel costs and reduced VAT to prevent international oil price increases from translating into even higher domestic prices. The government has also pursued longer-term measures to improve energy security, including a $16 billion refinery project backed by Nigerian businessman Aliko Dangote.
South Africa has relied on temporary adjustments to fuel levies to limit the impact of imported fuel inflation. In 2026, the government approved a short-term reduction of 300 cents per liter on petrol and 393 cents per liter on diesel. The measure provided temporary relief to motorists and businesses as high diesel costs threatened to feed into food prices and logistics expenses.
Other countries, such as Namibia, India, France, Germany, the United Kingdom, and the United States, have also adopted different approaches to protect households and businesses from the effects of expensive fuel. These measures include fuel price stabilization, tax cuts, and investments in public transportation and alternative fuels. The European Commission has urged governments to move away from broad price measures towards more targeted support for vulnerable groups.
The experiences of these countries demonstrate that there is no single solution to rising fuel prices. Nigeria has chosen to emphasize CNG and electric vehicles as part of its response, leveraging the country's large gas reserves to reduce dependence on petrol and diesel. However, the immediate challenge remains infrastructure, with CNG conversion and refueling facilities still unevenly distributed across the states.
Key points
- Nigeria's CNG infrastructure is unevenly distributed, posing challenges to implementing alternative-energy transport.
- Countries worldwide have adopted various measures to mitigate the impact of rising fuel costs, including fuel subsidies, tax cuts, and investments in public transportation.
- The European Commission has urged governments to move away from broad price measures towards more targeted support for vulnerable groups.
