Mobs in Nigeria Angry Over Gas Price Hikes

The Nigerian government has decided to end a subsidy program that kept fuel costs low.

January 04, 2012

LAGOS, Nigeria - Angry mobs in Nigeria are protesting a government decision to stop a subsidy program that kept the price of gasoline low for more than 20 years, the Associated Press reports. By ending the popular subsidy, the government wants to use the $8 billion it will save to improve infrastructure, but others, such as Olapido Fashino, a union leader, call the decision "immoral and politically suicidal."

Over the years, any attempts to change the subsidy in any way have been met with protests across the nation of more than 160 million. Yesterday, protestors went to gas stations asking owners not to sell gasoline at the increased price of around $3.50 per gallon, more than double what was charged a few days ago (around $1.70 per gallon).

Many Nigerians use gasoline to run generators, which are needed by businesses and residents on a daily basis because of spotty electrical service. The fuel hike will likely up food costs, too.

Even though President Goodluck Jonathan said that a committee will oversee that the $8 billion from ending the subsidy program will be used for needed improvements, many Nigerians have not seen any benefits from the country??s oil supplies. Experts point out that the gasoline price increase will probably trigger higher prices in the north because of its landlocked position.

Advertisement
Advertisement
Advertisement