Life at $8/gallon

Imagine if gasoline prices doubled overnight on New Year’s Eve. You’d probably be pretty upset, but that’s exactly what happened in Nigeria a few days ago. The government has long subsidized gasoline and until the end of 2011, it was about $1.60/gallon. After the subsidy was eliminated, prices now fluctuate and have more than doubled, going over $4/gallon. Considering that most Nigerians live on about $2/day, this is extremely burdensome, and they’re pretty upset about it.

There have been protests throughout the country and there are calls for a nationwide strike to begin on Monday. There is hope that discussion between the labor groups and the government will bear fruit and avoid such strikes, but if they happen, it could be crippling. Some people think they’d burn themselves out in a couple weeks but no one knows for sure.

This link has good background on the subsidy and situation.

I hope nothing breaks loose next week. One protestor has been killed by police already.





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