Nigeria subsidizing fuel by up to US$14.3 million per day

The Nigerian government, in response to the rise in the global cost of crude oil, is spending N2.2 billion (US$14.3 million) per day on fuel subsidies, in an effort to keep down the retail price of fuel. It is estimated that consumers use 33 million liters of gasoline per year. The federal government is spending an average of N67 (US$.44) on every liter of fuel, which adds up to N795.9 billion (US$51.6 million) annually. Those opposed to the subsidy state that if the oil sector was deregulated, the money spent on the subsidies could be used in other sectors of the economy in need of intervention. (April 7, 2011)