As tensions between the US and Iran drive crude oil above $105 per barrel, eighteen countries across Africa, Europe, Asia and the Americas have introduced subsidies, tax cuts and price caps to shield households. Nigeria, however, has yet to announce any major relief measures, writes DAMILOLA AINA
On 28 February 2026, escalating tensions between the United States and Iran sent shockwaves through global oil markets, driving crude prices sharply higher and reigniting fears of inflation, rising transportation costs and wider economic instability across the world.
Brent crude, which traded around $77 per barrel at the early stages of heightened geopolitical tensions in the Middle East in mid-2025, has surged above $105 per barrel in recent weeks, with intraday spikes approaching $120 as fears intensified over possible disruptions to oil shipments through the Strait of Hormuz, one of the world’s most critical oil transit routes.
Three months later, the development has forced governments across Africa, Europe, Asia and the Americas to adopt emergency economic measures aimed at cushioning citizens from the ripple effects of rising energy costs.
From fuel subsidies and tax cuts to transport support schemes and electricity relief packages, countries are racing to prevent a full-scale cost-of-living crisis.
Below is a list of African and other countries that have implemented relief measures to shield households and businesses from escalating global fuel prices, which have persisted for the past three months.
KENYA
The Kenyan government moved to cushion consumers through fuel tax adjustments and energy support measures after rising global crude prices threatened transportation and food supply chains.
In April, President William Ruto said the government moved to calm growing public anxiety over rising fuel prices, insisting that government subsidies, tax cuts and import arrangements have helped prevent even steeper increases at the pump.
Speaking during his tour of the Gusii region, Ruto said fuel prices would have risen much higher without state intervention through targeted subsidies and fiscal measures.
“The price of fuel has increased everywhere in the world, but in Kenya, we had planned to ensure that the prices, which would have increased very highly, were moderated.
“The government has used Sh6.5bn to subsidise fuel costs in Kenya. We have also reduced VAT to ensure that we moderate fuel prices, and I want to assure you that my government will do all it can,” Ruto said.
The Energy and Petroleum Regulatory Authority announced an increase in fuel prices for the April to May 2026 pricing cycle. Super Petrol rose by Sh28.69 per litre, while diesel increased by Sh40.30 per litre. Kerosene prices remained unchanged.
In Nairobi, Super Petrol, Diesel and Kerosene now retail at Sh206.97, Sh206.84 and Sh152.78, respectively, effective 15 April to 14 May 2026.
The regulator also noted that the Value Added Tax on Super Petrol, Diesel and Kerosene had been reduced from 16 per cent to eight per cent to moderate pump price increases and ease pressure on households.
SOUTH AFRICA
South Africa introduced temporary fuel levy adjustments and expanded interventions aimed at limiting imported fuel inflation.
The Minister of Finance, in consultation with the energy ministry, approved a short-term cut of 300 cents per litre on petrol and 393 cents per litre on diesel.
The relief measure will run from 6 May to 2 June 2026.
The country also reviewed transportation support programmes amid concerns that rising diesel prices could worsen food inflation and logistics costs.
NAMIBIA
Namibia rolled out fuel price stabilisation interventions and subsidy support to protect transport operators and consumers from volatile international oil prices.
To reduce the impact on consumers, the government has also temporarily reduced or suspended selected statutory fuel levies by up to 50 per cent for three months from 1 April 2026.
The government also announced that it will absorb about N$1.3bn through the National Energy Fund to cushion consumers and offset under-recoveries and supplier premiums for April and May 2026.
This includes N$805m to offset April under-recoveries and associated fuel premiums, as well as an additional projected N$490m for May.
MOZAMBIQUE
Mozambique adopted tax adjustments and fuel price cushioning mechanisms to reduce the impact of imported inflation on citizens.
Its government also introduced temporary tax reductions and transportation support programmes to prevent transport fare increases above 10 per cent.
EGYPT
Egypt implemented energy conservation measures and expanded support for public transportation systems while encouraging reduced fuel consumption to mitigate economic pressure.
It also delayed planned fuel price hikes despite mounting fiscal pressure while also expanding public transportation support and electricity conservation measures.
MOROCCO
Morocco increased support for transportation operators and logistics companies to prevent excessive increases in transport fares and commodity prices.
The government also expanded freight transport subsidies worth more than MAD1bn while introducing direct financial support for logistics operators struggling with diesel costs.
TUNISIA
Tunisia retained key fuel and food subsidy programmes despite mounting fiscal pressure, arguing that removing support during an oil shock could worsen social hardship.
It retained its broad fuel subsidy programme estimated at over $2bn annually, despite growing fiscal pressure from international lenders.
Outside Africa, governments across Europe and Asia have adopted even broader interventions.
INDIA
India announced reductions in excise duties on petrol and diesel while urging state governments to cut local fuel taxes.
The Indian government reduced excise duty on petrol from ₹13 per litre to ₹3 per litre while completely removing a ₹10 per litre excise duty on diesel.
The intervention reportedly cost the government nearly ₹70bn every two weeks in lost revenue.
Authorities also maintained controlled retail fuel prices despite crude prices trading above $100 per barrel.
INDONESIA
Indonesia increased fuel subsidy allocations and capped retail fuel prices to avoid inflationary shocks and social unrest.
The country has historically maintained strong state intervention in energy pricing whenever global oil markets become unstable.
It expanded its fuel subsidy budget to more than $30bn while maintaining price caps on subsidised fuel products such as Pertalite and diesel.
The government also widened electricity subsidy coverage for millions of households.
MALAYSIA
Malaysia continued extensive petrol and diesel subsidies aimed at protecting households and businesses from global market volatility.
Its government retained its blanket petrol subsidy framework, keeping RON95 petrol prices around RM2.05 per litre despite rising international crude prices.
THAILAND
Thailand extended diesel subsidy programmes and maintained price caps. It has a diesel price cap programme at roughly 33 baht per litre through its state oil fund while reducing electricity tariff pressure on households and businesses.
GREECE
Greece introduced diesel support schemes and retail fuel interventions to ease pressure on households and businesses.
It introduced direct fuel subsidy support covering up to €80 per household while expanding diesel assistance for island and remote communities.
FRANCE
France expanded fuel rebate schemes for motorists while maintaining electricity support programmes worth billions of euros.
At some stages of the energy crisis, French fuel rebates reached as high as €0.30 per litre.
GERMANY
Germany adopted temporary fuel tax reductions and expanded public transport incentives to reduce inflationary pressure.
It temporarily reduced fuel taxes by around €0.30 per litre for petrol and €0.14 per litre for diesel.
The country also expanded its discounted nationwide public transportation programme to reduce household transportation expenses.
BRAZIL
Brazil implemented tax relief measures and pricing interventions through state-linked energy institutions to reduce the impact of rising crude prices.
It also reduced federal fuel taxes to near zero during intervention periods while state-linked oil company Petrobras implemented controlled pricing measures aimed at limiting domestic fuel spikes.
UNITED KINGDOM
The United Kingdom maintained energy support programmes and fuel duty freezes introduced during earlier energy crises.
It maintained its 5p per litre fuel duty cut and continued household energy support programmes worth hundreds of pounds for vulnerable consumers.
USA
The United States of America, under President Donald Trump, released volumes from its Strategic Petroleum Reserve and debated temporary fuel tax holidays to moderate gasoline prices.
It responded by releasing millions of barrels of crude oil from its Strategic Petroleum Reserve to ease supply concerns.
American lawmakers also debated a temporary federal gasoline tax holiday worth 18.4 cents per gallon to reduce fuel costs for consumers.
Most governments are adopting similar strategies to protect consumers from energy-driven inflation.
The measures generally fall into five broad categories: fuel subsidies, VAT and fuel tax cuts, public transport support, retail fuel price caps and strategic petroleum reserve releases.
However, despite being Africa’s largest oil producer, Nigeria has yet to announce any direct or major cushioning measures targeted at reducing the impact of rising global crude prices on citizens already battling inflation, high transport fares and soaring food prices.
The situation has raised concerns among economists, labour groups and energy analysts who warn that without intervention, the latest oil rally could worsen economic hardship for millions of Nigerians.
Nigeria’s Coordinating Minister of the Economy and Minister of Finance, Taiwo Oyedele, has said the Federal Government will not reintroduce subsidies or impose price controls, reaffirming its commitment to market-driven economic reforms.
Speaking at an event in Paris after an engagement with global investors on Tuesday, Oyedele stressed that the government’s priority is to avoid policies that distort the economy and to strengthen regulation to protect citizens.
“We will not bring back subsidies, and we will not introduce price controls because we believe in markets.
“At the same time, we will ensure that regulation is responsible so that no supplier, trader, or manufacturer takes advantage of the Nigerian people,” he assured.
Experts say the latest oil rally could worsen Nigeria’s inflation outlook in the coming months.
Higher diesel prices could raise manufacturing and logistics costs, while increased petrol prices may affect transportation and food supply chains nationwide.
Already, many Nigerians spend significant portions of their incomes on transportation and energy costs.
The National Bureau of Statistics had earlier reported elevated inflation figures driven largely by food prices, transportation and energy-related expenses.
Higher fuel costs triggered by global tensions have pushed Nigerian firms to raise selling prices to a 16-month high, even as overall business activity continued to expand in April, according to the latest Purchasing Managers’ Index report.
The report by Stanbic IBTC Bank and S&P Global indicated, “The pass-through of increased input costs to customers resulted in a further sharp rise in output prices, with the rate of inflation quickening to the fastest since December 2024,” highlighting how elevated fuel costs directly fed into higher prices charged by businesses.
Labour unions have repeatedly warned that further increases in fuel-related costs could worsen poverty levels.
The President of the Nigeria Labour Congress, Joe Ajaero, recently warned that Nigerian workers were already under severe economic pressure due to inflation and rising living costs.
Organised labour groups have continued to push for wage adjustments and stronger social protection measures, but questions remain over whether the government will instead prioritise rising crude prices and the prospect of higher oil revenue earnings.