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Nigeria fury as fuel prices double after subsidy ends Nigeria fury as fuel prices double after subsidy ends
(40 minutes later)
  
Ordinary Nigerians and trade unionists have condemned the government for withdrawing a fuel price subsidy which has led some petrol prices to double and many filling stations to stay shut. Ordinary Nigerians and trade unionists have condemned the government for withdrawing a fuel price subsidy which has led petrol prices to more than double in many areas.
The BBC's Chris Ewokor in the capital, Abuja, says Nigerians are angry at the announcement, fearing the price of many other goods will also rise.The BBC's Chris Ewokor in the capital, Abuja, says Nigerians are angry at the announcement, fearing the price of many other goods will also rise.
The main trade unions have called people to prepare for a strike.The main trade unions have called people to prepare for a strike.
Nigeria is Africa's biggest oil producer, but imports refined petrol.Nigeria is Africa's biggest oil producer, but imports refined petrol.
Years of mismanagement and corruption mean it does not have the capacity to refine oil, turning it into petrol and other fuels.Years of mismanagement and corruption mean it does not have the capacity to refine oil, turning it into petrol and other fuels.
Analysts say many Nigerians regard cheap fuel as the only benefit they get from the nation's oil wealth.Analysts say many Nigerians regard cheap fuel as the only benefit they get from the nation's oil wealth.
A previous attempt to remove the subsidy in 2004 was withdrawn in the face of widespread public protests. Several previous governments have tried to remove the subsidy but have backed down in the face of widespread public protests and reduced it instead.
The IMF has long urged Nigeria's government to remove the subsidy, which costs a reported $8bn (£5.2bn) a year.
'Long drawn battle''Long drawn battle'
Our correspondent says that many petrol stations in Abuja are closed as the owners are not sure what price they should charge. Our correspondent says that early in the morning, many petrol stations in Abuja were closed as the owners were not sure what price they should charge, but they have since opened.
He says there are long queues outside some filling stations. Prices have increased from 65 naira ($0.40; £0.26) per litre to at least 140 naira in filling stations and from 100 naira to at least 200 on the black market, where many Nigerians buy their fuel.
In the commercial capital, Lagos, most petrol stations are closed, while those which are open have more than doubled their prices, reports the BBC's Tomi Oladipo in the city. Some commuters have complained that motorcycle and minibus taxi fares have already doubled or tripled.
Prices have increased from 65 naira ($0.40; £0.26) per litre to at least 140 naira in filling stations and from 100 naira to at least 200 on the black market. The government says it will use some of the money saved by removing the subsidy to improve infrastructure and relieve poverty.
The government says it has spent more than $8bn (£5.2bn) on the subsidies in the past year and that it will use some of the money to improve infrastructure. In a statement, it urged people not to panic-buy or hoard fuel.
"Consumers are assured of adequate supply of quality products at prices that are competitive and non-exploitative and so there is no need for anyone to engage in panic buying or product hoarding," said a government statement. "Consumers are assured of adequate supply of quality products at prices that are competitive and non-exploitative," it said.
The government recently released a list of the biggest beneficiaries of the subsidy, who include some of Nigeria's richest people - the owners of fuel-importing firms.
Nigeria's two main labour organisations, the Trades Union Congress and the Nigerian Labour Congress, issued a joint statement condemning the move.Nigeria's two main labour organisations, the Trades Union Congress and the Nigerian Labour Congress, issued a joint statement condemning the move.
"We alert the populace to begin immediate mobilisation towards the D-Day for the commencement of strikes, street demonstrations and mass protests across the country," the statement said."We alert the populace to begin immediate mobilisation towards the D-Day for the commencement of strikes, street demonstrations and mass protests across the country," the statement said.
"This promises to be a long-drawn battle; we know it is beginning, but we do not know its end or when it will end.""This promises to be a long-drawn battle; we know it is beginning, but we do not know its end or when it will end."
"We are confident the Nigerian people will triumph," it said."We are confident the Nigerian people will triumph," it said.
State of emergency Labour activist John Odah told the BBC's Network Africa programme that, judging from past experience, he doubted that the government would use the money saved by removing the subsidy to help ordinary people.
He said that the subsidy should have been retained until Nigeria's refineries had been brought up to scratch.
"As an oil-producing country, we ought not to be importing fuel in the first place," he said.
He also pointed out that Nigeria does not have many commuter railways, so people have little choice but to use motorcycle and minibus taxis, whose prices are closely linked to the price of petrol.
Fuel smuggling
Nigeria is Africa's biggest oil producer but most of the available 2 million barrels per day are exported in an unrefined state.Nigeria is Africa's biggest oil producer but most of the available 2 million barrels per day are exported in an unrefined state.
The country lacks refineries and infrastructure so has to import refined products such as petrol, which is expensive.The country lacks refineries and infrastructure so has to import refined products such as petrol, which is expensive.
However, with the price of fuel much cheaper in Nigeria than in neighbouring countries, the subsidy led to widespread smuggling.
Nigerians are heavy users of fuel, not just for cars but to power generators that many households and businesses use to cope with the country's erratic electricity supply.Nigerians are heavy users of fuel, not just for cars but to power generators that many households and businesses use to cope with the country's erratic electricity supply.
Previous attempts to end the subsidies in Nigeria have prompted industrial action and street protests.
Correspondents say the measures just announced could add to the difficulties faced by Nigerian President Goodluck Jonathan, who declared a state of emergency on Saturday in areas hit by Islamist violence.Correspondents say the measures just announced could add to the difficulties faced by Nigerian President Goodluck Jonathan, who declared a state of emergency on Saturday in areas hit by Islamist violence.