December 21, 1998
Web posted at: 3:59 p.m. EST (2059 GMT)

LAGOS, Nigeria (CNN) -- Nigerian fuel prices more than doubled on Monday after four years at a level fixed by the government of Africa's biggest oil-producing state.

Increases in official prices have in the past triggered riots in the West African country of more than 108 million. There were no immediate reports of such unrest this time.

There had been no public announcement of a rise in the price, but filling stations sold gasoline for 25 naira ($0.29) per liter, instead of the previous 11 naira pump price.

Last week, Nigeria's number two, Rear Adm. Okhai Akhigbe, said the government would no longer fix fuel prices, but he gave no indication when the change would take effect.

Political observers say the deregulation of the oil market is one of the clearest signals that military ruler Gen. Abdulsalami Abubakar is as committed to liberal economic reforms as to a widely accepted democracy plan under which he intends to step down next May.

Fuel shortages have been worse than ever this year and are seen by many Nigerians as the most obvious symptom of military misrule in the oil-rich nation.

The failure of four state-run refineries has forced the government to import massive quantities of gasoline. The imports have still failed to meet demand though.

Many Nigerians reportedly pay much more than the new price when they buy fuel on the black market. State subsidies have kept the gasoline price artificially low, encouraging smuggling to neighboring countries and thereby contributing to a dearth of refined petroleum products in Nigeria, the world's sixth largest oil producer.

For many Nigerians struggling to feed families in a harsh economic environment, the increase in fuel prices will mean yet another blow and is widely expected to lead to a more general rise in prices.

Despite the fuel shortages, the price subsidy had been one of the few benefits which Nigerians could expect from a state that provides almost nothing else.

"What the fuel price increase means is that ordinary Nigerians are being punished for the failures of successive regimes," said Adindu Ogamba, a student activist.

"There have been about five increases in the past decade and each time for the same reasons, but we end up with worse service afterwards. It's not likely to be different this time."

Reuters contributed to this report.