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Nigeria unions to resist 'criminal' fuel price hike Nigeria unions to resist 'criminal' fuel price hike
(about 2 hours later)
Nigeria's trade union federation has said it will resist what it calls the "criminal" rise in the petrol price. Nigeria's trade union federation has said it will resist what it calls the "criminal" 66% rise in the petrol price, as fuel subsidies are removed.
The government announced on Wednesday that the price was to go up by two-thirds, in a bid to ease crippling fuel shortages. The government announced on Wednesday that the price was to increase in a bid to ease crippling fuel shortages.
The Nigeria Labour Congress said the increase from 86 naira ($0.43; £0.30) a litre to 145 naira should be reversed. The Nigeria Labour Congress (NLC) said the rise from 86.5 naira ($0.43) a litre to 145 naira should be reversed.
In 2012, the government was forced to back down on a planned price rise after nationwide protests. In 2012, the government was forced to back down on a similar price rise after nationwide protests.
Africa Live: More on this and other news storiesAfrica Live: More on this and other news stories
A subsidy, which has kept the price low, costs the government $6.5m a day, says the BBC's Isa Sanusi in Nigeria's capital, Abuja. Why is Africa's largest oil producer short of petrol?
But recent fuel shortages have seen Nigerians paying up to 250 naira a litre on the black market. Buhari's battle to clean up Nigeria's oil industry
Despite being one of Africa's largest oil producers, Nigeria has to import fuel to meet demand as Nigerian refineries are dilapidated and work at a fraction of their capacity. The subsidy, which has kept the price low, costs the government $2.7m a day and there is no provision for it in the recently approved budget for this year, the petroleum ministry said in a statement.
"The main reason for the current problem is the inability of importers of petroleum products to source foreign exchange at the official rate due to the massive decline of foreign exchange earnings of the federal government," said Petroleum Minister Ibe Kachikwu. Recent fuel shortages have seen Nigerians paying up to 350 naira a litre on the black market, it added.
"We expect that this new policy will lead to improved supply and competition and eventually drive down pump prices," he added. Despite being one of Africa's largest oil producers, Nigeria has to import fuel to meet demand as its refineries are dilapidated and work at a fraction of their capacity.
Petroleum Minister Emmanuel Ibe Kachikwu said that the price rise should stabilise the market and help end the fuel scarcity.
But "even with the new price regime, Nigeria would remain one of the cheapest fuel markets in Africa," he added.
In January, International Monetary Fund chief Christine Lagarde urged Nigeria to drop the subsidy saying that it encouraged corruption and does not "help the poor".
But the NLC has argued that given the other economic difficulties ordinary Nigerians are facing, "the least one had expected... was another policy measure that would further make life more miserable".
It added that its national executive will be meeting on Friday to decide exactly what action to take.