Nigerian govt denies plan to raise fuel prices

Nigeria’s federal government has denied it is planning to increase fuel prices because of the rising cost of crude oil in the international market.
“Government has an understanding with the Nigeria Labour Congress
(NLC) that until June 2008, there will be no upward adjustment of prices of petr oleum products,” Minister of State for Energy (petroleum), Odein Ajumogobia, told journalists in Abuja, the nation’s capital.
“Government is committed to honour the agreement with NLC. Government has no int ention to increase prices,” he added.
The local press had reported last week that the government plans to increase fue l prices to reduce its subsidy on the cost of importing fuel.
Nigeria, Africa’s largest oil producer, imports most of the petroleum products c onsumed locally because the nation’s four refineries are not functioning.
That ultimately subjects the domestic prices of the products to the vagaries of international crude oil prices.
Fuel prices increase is a sensitive issue in Nigeria, where the citizens believe they are entitled to cheap fuel in view of the nation’s status as one of the to p oil producers in the world.
Incessant fuel price hikes under the past administration caused organized labour to call nationwide strike several times.
Petrol currently sells for 70 naira (56 cents) per litre.