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Last Updated: Thursday, 2 October, 2003, 17:50 GMT 18:50 UK
Nigeria fuel prices soar
By Anna Borzello
In Lagos

Black market fuel along the road side in Lagos
Taxi drivers are confused and feel tricked by the government
The price of fuel in Nigeria has gone up by 12% without the government making any kind of intelligible public announcement to explain just what is going on.

Earlier this week, the petroleum pricing body said that in principle they supported deregulating the price of petroleum products, but it did not explain this would actually take effect the following day.

The result has been confusion.

"The government is just trying to trick us," a despondent taxi driver told the BBC while standing in a one hour long queue for fuel in Lagos.

The increase in fuel prices has outraged the Nigerian Labour Congress, which has warned that if the price does not come down they will call a general strike.

Subsidies

A fuel price hike three months ago led to a 10 day nationwide strike which ended in a partial government back down.

The price of fuel is a controversial issue in Nigeria.

The country is among the world's top 10 largest exporters of crude oil, but the government has until now imported the refined product and sold it at a subsidised fixed price.

The government hopes that by lifting subsidies they will generate revenue which they can use to improve the country's crumbling infrastructure.

It is on the face of it an odd time to launch such a potentially explosive economic policy.

On Saturday Nigeria hosts the All Africa Games which are the continent's equivalent of the Olympic Games.


SEE ALSO:
Nigeria tackles fuel subsidies
18 Jul 03  |  Business
Fuel fears prompt Lagos chaos
17 Jun 03  |  Business



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