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02 Jan 2012 11:56
Nigeria’s government says it is ending fuel subsidies—a move that is sure to be unpopular in an oil-rich nation where citizens have come to expect cheap fuel as one of their few government benefits.
The Petroleum Products Pricing Regulatory Agency announced on Sunday that it would stop paying the subsidy to petroleum importers, effective immediately. The agency assured customers’ prices would be competitive.
The move could see gas prices increase from the current level of about 45 cents per litre.
The government estimated it could save $8-billion by phasing out subsidies and planned to use that money to help the poor.
Nigeria is a top producer of crude but virtually all of its petroleum products are imported after years of graft, mismanagement and violence at its refineries.—Sapa-AP
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