Nigeria petrol hikes condemned

The unions forced the government to withdraw previous increases

The main trade union movement Nigeria has called on the government to reverse increases in fuel price that were announced on Tuesday.

The Nigeria Labour Congress said in a statement that the new prices showed a lack of concern for public welfare, and predicted they would lead to higher inflation.

The new prices will... make life more unbearable for the common people

NLC

Petrol, diesel and kerosene are to rise by between 18 and 29%.

In June 2000, the labour congress led a nationwide strike which forced the government to abandon an attempt to sharply increase fuel prices but after prolonged negotiations a smaller rise was agreed.

This time, the NLC has not threatened any strike action.

Commercial vehicles were queuing up outside petrol stations on Wednesday before the prices went up, reports AP news agency.

Inefficient

Some buses and taxis have already increased their fares to take account of the new petrol prices.

Commuter Paul Tom told AP that his usual fare of 60 naira (50 to 98 cents) had gone up to 100 naira.

Fuel is also vital for cooking and heating in Nigeria

Nigeria is one of the world's largest oil producers but suffers from periodic petrol shortages due to inefficient distribution.

Correspondents say that official prices are around one-third of the price of neighbouring countries because they are subsidised by the government.

But this means that petrol is often smuggled across Nigeria's borders or sold on the roadside by black market dealers.

The government said that it had to raise the price in order to attract badly needed investment into the petrol sector.

"The truth of the matter is that nobody will bring in products or invest in refining for as long as prices are fixed by a government fiat," said Rasheed Gbadamosi, the chairman of a petrol price-setting committee.