May 13, 2016
Two days after the Nigerian government removed fuel subsidies and raised the price cap to N145 per liter, Nigerians experienced shorter fuel lines.
Two days after the Nigerian government removed fuel subsidies and raised the price cap to N145 per liter, Nigerians experienced shorter fuel lines.
Demand for fuel dropped when the price increased. The government is hoping, however, that higher fuel prices caused by the removal of subsidies will compel oil marketers to import more oil into the country, which would remedy Nigeria's fuel scarcity.
Theoretically, if the supply of fuel increases, so too will competition, which will drive down prices in the long run, according to some experts.
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