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|**Country E R**|**Pricing policy and strategy**|**Fuel supply conditions**|
|---|---|---|
||are set by a ministerial decree. Prices were adjusted once in 2009<br>and 2010, and four times in 2011. In Jan 2012, prices of all fuels<br>except kerosene were lowered, and were not adjusted for the rest of<br>the year. In Jan 2013, the prices of gasoline and diesel were lowered,<br>while kerosene and LPG prices did not change. An energy fund,<br>created in 1994, has taken a few francs a liter from gasoline and<br>diesel and cross-subsidized LPG. Fuel subsidies amounted to US$29<br>million in 2009 (0.5% of GDP), US$61 million in 2010 (1.1% of<br>GDP), and US$70 million in 2011 (1.2% of GDP). With the start-up<br>of oil production and refinery operation in 2011, explicit fuel price<br>subsidies were eliminated in 2012 (source IMF).<br>**Protests**: The start-up of the refinery in Nov 2011 raised<br>expectations about dramatic reductions in the prices of petroleum<br>products. When the reductions did not occur, protests broke out<br>against the high cost of living and turned violent in Dec 2011.<br>Government in Jan 2012 in response increased civil service pay by<br>5–10% and reduced electricity tariffs by 25% and water by 5%.<br>**Information**: SONIDEP (Nigerien Petroleum Products Company)<br>posts current and historical prices going back to 2001 on its Web<br>site.|<br> <br>domestic oil production.|
|Nigeria<br>√<br>√|<br>**Pricing policy**: Gasoline prices are uniform, controlled by<br>government, and infrequently adjusted. The gasoline price was<br>₦65/liter between Aug 2005 (US$0.50) and Dec 2011 (US$0.41),<br>except in 2007 and 2008 when it was raised to ₦75/liter for a month<br>and then lowered to ₦70/liter. Diesel prices have been deregulated<br>for several years. Government removed the gasoline subsidy on Jan<br>1, 2012 and allowed the retail price to rise above ₦140<br>(US$0.88)/liter or higher, but following widespread protests lowered<br>it within two weeks to ₦97 (US$0.61), still representing a 49%<br>increase from the price in 2011. A Jun 2009 presidential directive<br>deregulated the price of kerosene for household use, but Nigerian<br>National Petroleum Corporation (NNPC) continues to sell kerosene<br>at a heavily subsidized price of ₦50 (US$0.32)/liter and receive<br>reimbursement from government. The kerosene price is about one-<br>third of the market price and the subsidy is intended to help poor<br>households with lighting and cooking.<br>**Regulatory agencies**: Petroleum Products Pricing Regulatory<br>Agency (PPPRA) manages Petroleum Support Fund (PSF), which<br>was established in Jan 2006 to stabilize domestic fuel prices. With<br>the Central Bank of Nigeria as the custodian of the fund, PSF<br>follows the principle of under-recoveries to be reimbursed and over-<br>recoveries to be paid into the fund, based on international costs,<br>charges, and controlled profit margins using a pricing template.<br>Petroleum Equalization Fund Management Board equalizes<br>transportation costs for pan-territorial pricing. PPPRA approves<br>import quotas for gasoline and eligibility for subsidy reimbursement.<br>**Social protection:**Leading up to the removal of the gasoline<br>subsidy in Jan 2012, government developed a Subsidy Reinvestment<br>and Empowerment (SURE) program. The objective of the SURE<br>program is three-fold: to mitigate the immediate impact of subsidy<br>removal, accelerate economic transformation through investing in<br>critical infrastructure, and lay a foundation for a national safety net<br>program. Social protection mechanisms under SURE include<br>maternal and child health services, public works for women and<br>youth, urban transport development, and vocational training.<br>However, the full document was not issued until Nov 2011, less than<br>two months before the subsidy removal, giving inadequate time for|<br> <br> <br> <br>**Supply**: Years of subsidies and<br>mismanagement have left the refining<br>sector in Nigeria in disrepair, forcing the<br>world’s eighth exporter of crude oil to<br>become a significant importer of petroleum<br>products. In Nov 2012, government said<br>that attacks on petroleum product pipelines<br>cost Nigeria ₦105 billion (US$7 billion) a<br>year. There are significant delays in<br>discharging fuel at ports, incurring<br>considerable demurrage charges; gasoline<br>unloading of 20-40 days was said to be<br>common until 2012, when imports dropped<br>and the waiting time was reduced to more<br>like three weeks.<br>**Shortages**: Attacks on oil pipelines and<br>disagreement between oil companies and<br>government over subsidy payments have<br>resulted in frequent acute fuel shortages.<br>Following government’s decision to no<br>longer include the subsidy provision in the<br>2009 budget, private oil marketers stopped<br>importing, causing serious fuel shortages.<br>Delays in reimbursements continued to<br>discourage imports, and serious fuel<br>shortages were reported in late 2009 and<br>early 2010, when it was also reported that<br>marketers were not importing because of<br>uncertainties about when deregulation<br>would be announced. Shortages continued<br>in Jan 2012, after licenses were suspended<br>following the investigation in the House of<br>Representatives. Serious shortages were<br>experienced particularly in the last quarter<br>of 2012. Serious and continuing kerosene<br>shortages have meant that consumers rarely<br>benefit from the large unit price subsidy,<br>and black marketprices could even exceed|