- Associated Press - Tuesday, January 3, 2012

LAGOS, Nigeria — An angry mob protesting spiraling fuel prices assaulted a soldier Tuesday while police shot another man at the demonstration, a sign of growing unrest over the government’s hugely unpopular decision to end a subsidy program that had kept gas costs down for more than two decades.

An Associated Press reporter at the scene said the protest had started with activists wielding signs and walking down a major expressway, but before long angry protesters lit bonfires and vandalized at least three gas stations. A wounded man later ran along the road shouting: “The police shot me, take me to hospital!”

The Nigerian government’s quiet announcement over the long holiday weekend that the popular subsidy was being ended already has led to organizing in major cities across Africa’s most populous nation of 160 million.

Nigeria’s government says it will use $8 billion in savings to make much-needed infrastructure improvements. But union leader Oladipo Fashina has described the move as “immoral and politically suicidal” and he has urged Nigerians to resist “with everything they have.”

Previous attempts to even tamper with the subsidy have been met with nationwide protests.

On Tuesday, a rapidly growing group of protesters were going from gas station to station, telling owners not to sell gas at the spiked prices of about $3.50 a gallon (94 cents per liter).

That is more than double what consumers paid only days ago for the fuel desperately needed to power the generators that keep many businesses running in Nigeria, where the national electricity supply can be described as sporadic at best.

President Goodluck Jonathan announced Monday evening that he has set up a committee to ensure that the savings from the subsidy’s end will be invested effectively to improve the quality of life of Nigerians.

Few, though, have seen any benefit from the country’s vast oil wealth over decades of production, and a culture of distrust of government permeates Nigerian society.

And the unrest over rising gas prices is only further adding to Nigeria’s security woes: Jonathan already declared a state of emergency over the weekend in parts of the country hit by a growing Islamic insurgency that is fueled in part by widespread poverty.

And the gas price hike is likely to result in even higher prices in the landlocked and violence-plagued north, as Nigeria’s refined oil is mainly imported through ports in the country’s south.

Already the price of gas has risen to at least $3.50 per gallon (94 cents per liter) — just over double Sunday’s morning price of about $1.70 per gallon (45 cents per liter). Most Nigerians subsist on just $2 a day and the rising gas prices are expected to force food prices to spiral as well.

“I don’t want to lose customers by doubling my rates, so I’ll have to bear some of this cost myself,” said Yomi Esan, 31, a driver for a taxi chain. “My biggest worry is losing my customers because this is how I feed my family.”

Nigeria, an OPEC member nation producing about 2.4 million barrels of crude oil a day, is a top supplier to the United States, but virtually all of its petroleum products are imported after years of graft, mismanagement and violence at its refineries.

The Petroleum Products Pricing Regulatory Agency announced Sunday that effective immediately it would stop paying the subsidy on fuel to petroleum importers.

Story Continues →