Petrol price hiked by 15%

Oil-rich Nigeria has hiked the pump price of petrol by 15 percent, raising fears of a dispute between unions and the government.

Although no official announcement has been made, Nigerian motorists woke up to find petrol stations in Lagos, Abuja and other cities had increased their pump price to 75 naira from 65 naira per litre.

The increase came just 24 hours before President Olusegun Obasanjo steps down after eight years in office.

Attendants at Nigerian garages told AFP that the adjustment was aimed at covering their rising cost of business.

Since Obasanjo came into office in 1999, past fuel price hikes, supported by authorities, have triggered strikes aimed at making the government to reverse its decision.

"This is one price increase too many. Obasanjo has increased fuel price by more than five times since he came to power in 1999," union leader Dele Dada told AFP.

He said unions would resist the hike.

"This is a bad parting gift to Nigerians. How can somebody who has less than 24 hours to leave government introduce a policy that will further impoverish the people?" Lagos lawyer Gani Fawehinmi asked.

Analysts say the hike might cause a quick crisis for new president Umaru Yar'Adua.

The oil unions suspended a two-day-old strike by 4,000 workers on Saturday after the government met their demands over the proposed sale of two state-owned oil refineries to private investors.

Nigeria, Africa's biggest producer and the world's sixth oil exporter, has seen a quarter of its daily output of 2.6 million barrels per day cut back by unrest in the Niger delta.

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